My budget reports shows $0 spent, why?

I have just imported my account information to homebank. I then created categories and set up a budget for those categories. Next, I assigned transactions to categories and validated them. However, when I view the budget report, I have the budget numbers that I set up, a decay value which is the negative of the budget amount and $0 for the spent amount. Why are my validated transactions (which are assigned to categories) not being counted as "spent"? I think I'm missing a set up step.

Thank you for your assistance.

p.s. I'm using version 4.1 on Ubuntu 10.04