Staff costs are all emoluments incurred. Other direct costs are non-staff costs incurred by each principal activity. Governance costs are those incurred in connection with the administration of the charity’s constitutional and statutory duties. Irrecoverable VAT is treated as resources expended in the principal activity that incurred the original VAT. Support costs, including premises, fundraising, central administration, IT support, human resources costs, governance and finance costs (staff and other costs), which are not directly attributable to a particular principal activity, have been fully allocated to departments and activities based on direct staff costs of the principal activity as shown in note 7. n) Reserves Unrestricted funds represent funds raised or grants awarded for no specified project which are expendable at the discretion of the trustees in furtherance of the charity’s objectives. The expenditure will arise in subsequent financial periods. There are no carry-forward restrictions on unrestricted funds. Transfers to and from designated funds are subject to the approval of the trustees. Restricted funds are awarded for a specified programme as declared by the funder, or restricted with their authority or with a restriction created by a legal process. The scope of the programme is still within the wider objectives of the charity. Income may be awarded in one year for expenditure in that or a subsequent year on a specified programme. o) Provisions Provisions for future liabilities are recognised when Citizens Advice has a legal or constructive financial obligation that can be reliably estimated and for which there is an expectation that payment will be made. p) Consolidation Citizens Advice Limited, a trading subsidiary controlled by Citizens Advice has also been consolidated within the accounts on a line-by-line basis. The net outgoing resources for Citizens Advice alone were £6,191,000 in 2020/21 (£1,988,000 net incoming in 2019/20). A separate statement of financial activities for the charity is not presented because the charity has taken advantage of the exemptions afforded by Section 408 of the Companies Act 2006. The charity has taken advantage of the exemption in FRS 102 from the requirements to present a charity-only cash flow statement and certain disclosures about the charity’s financial instruments. q) Critical accounting judgements and key sources of estimation uncertainty In the application of the charity’s accounting policies, trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and 80 Financial Statements