The NYDA indicated that it formulates its budget according to the Activity Based Costing (ABC) system hence the tagging of operational expenses and project disbursements for the same expenditure items. However the Committee highlighted that the Agency should review its budget classification for reporting on expenditure items so as to show clear distinctions in expenditure items. With regard to the collection of revenue, the NYDA reported that it has undertaken legal steps towards some loan beneficiaries and was in the process of negotiating settlement proposals and revised repayment terms and anticipated that it would be able to collect all the budgeted revenue.