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documents and other information relating to desk reviews also apply to field audits, except for requests made by the auditor while at the facility in the conduct of a field audit; while the department is at a facility conducting a field audit, the facility shall promptly respond to the auditor’s requests to produce documents or other items, and to requests for information during normal working hours;

(4) the department will work with the facility to schedule the auditor/facility liaison consultations that are necessary to discuss proposed audit adjustments, open issues, and general progress of the audit;

(5) an exit conference shall be conducted as audit work at the facility nears completion unless the facility requests the department in writing not to conduct an exit conference; the department’s auditor and the facility’s representatives authorized to respond to audit questions shall attend the exit conference; third-party preparers of reports or statements subject to audit and other facility consultants may also attend an exit conference; at an exit conference, the department will provide the facility with all audit adjustments that have been made final by that time, discuss unresolved issues, and indicate what type of information is required from the facility to resolve those issues; the department may make additional findings and adjustments during preparation of the audit report;

(6) a facility shall, no more than 30 days after the date of the exit conference, provide documents or other items not available at the exit conference and its comments relating to the department’s proposed audit adjustments; the auditor may, for good cause, extend the time for the facility to provide the documents or other items;

(7) the department will review and consider the information provided by the facility and issue the audit report and adjustments that are proposed to be made for purposes of setting rates under this chapter;

(8) a facility’s failure to timely respond to the department’s requests as provided in this subsection may result in permanent disallowance of the items in question; this paragraph does not limit the right of a facility to appeal adjustments under 7 AAC 150.220. (f) The department may conduct desk reviews or field audits of a facility at times later than otherwise provided for in this section. To the greatest extent practicable, the procedures described in this section apply to out-of-time desk reviews and field audits. The department may prospectively adjust a facility’s rates or other payments, taking into account the out-of-time desk review or field audit at the time of the facility’s next rate-setting for the rate year that begins at least 90 days after the department provides the completed report to the facility. In establishing a rate, the department is not required to consider or include adjustments made by Medicare intermediaries to Medicare cost reports after the department has completed its audit. The department will provide the facility with all adjustments proposed to be made for purposes of setting rates under this chapter and attachments specified in (b) of this section. (g) The report presented to the facility will include

(1) criteria that form the basis of the adjustments, including the statutory, regulatory, or