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(e) A target provider is responsible for accurate cost reporting. The target provider is responsible for including in the cost survey report all costs incurred, based on an accrual method of accounting, and in accordance with allowable and nonallowable cost provisions in this section and other applicable provisions of 7 AAC 105 — 7 AAC 160. The cost survey is limited to actual allowable costs and other financial and statistical information. The target provider may not impute or report a cost on the cost survey if

(1) the cost was not actually incurred; or

(2) documentation does not exist for the cost, even if the cost was actually incurred during the reporting period. (f) A target provider shall maintain adequate documentation to support the compensation of owners and other related parties. If a target provider fails to provide adequate documentation upon request to substantiate the cost to the related party, and if that cost exceeds $5,000, the reported cost is nonallowable. The minimum documentation for each owner or related party cost in excess of $5,000 is

(1) identification of the related party’s total cost;

(2) the basis of allocation of direct and indirect costs to the target provider;

(3) other business entities served by the related party;

(4) a detailed written description of actual duties, functions, and responsibilities;

(5) documentation substantiating that the services performed were not duplicative of services performed by other employees;

(6) daily timesheets or other documentation verifying the hours and days worked;

(7) the total amount of compensation paid for these duties, with a breakdown detailing regular salary, overtime, bonuses, benefits, and other payments;

(8) documentation of regular, periodic payments or accruals of the compensation; and

(9) if applicable, a detailed allocation worksheet indicating how the total compensation was allocated across all business components that received benefit of the effort. (g) Allowable expenses in related-party transactions are reported on the cost survey report at the cost to the related party. However, those costs may not exceed the price of comparable services, equipment, facilities, or supplies that could be purchased or leased elsewhere in an arm’s length transaction. (h) Total expenses on the cost survey must match the audited financial statements. (i) The department may determine a cost survey report to be unacceptable and return it to the target provider for

(1) use of an incorrect cost-reporting period;