Program costs cover expenses directly related to (1) the direction, coordination or implementation of component services as well as (2) the delivery of such component services. Program components include education, disabilities, health, nutrition, parent involvement, social services and transportation. The provision of program component services, training and transportation for staff, parents and volunteers are program costs. Such costs can be either personnel or non-personnel costs.

Personnel costs that are classified as program costs include salaries and fringe benefits for the program component coordinators and component staff in the delivery of services. Thus personnel costs for the positions of teachers, cooks, parent involvement aides and bus drivers are program costs. In addition, program personnel costs include the janitor/custodian and transportation staff involved in program component efforts and the costs associated with parent involvement and component volunteer services.

Non-personnel costs include allowable costs of travel, per diem and transportation, training, food center/classroom supplies and equipment, parent activities funds, liability insurance, and the occupation of program component space, including utilities. Purchase of a school bus is a programmatic cost.

Labeling a personnel officer as a "program officer," or a staff accountant as a "program manager," does not make it a programmatic position or a programmatic cost. They are still administrative staff and must be classified as such.