(b) Errors, whether mathematical or clerical, made by the department or an article 43 corporation in the rate calculation process or in the development of group ceilings, and errors, whether mathematical or clerical or otherwise, in data submitted by a facility, when the revised data submitted meet the same certification requirements as the original data, may be the basis for an application for prospective revision of a certified or approved rate. Such errors may include, but shall not be limited to, the following areas related to the development of reimbursable costs:

1. (1) funding of depreciation, capital costs, patient visits/procedures; and
2. (2) nonallowable costs, such as revenue recoveries. Applications pursuant to this subdivision must be submitted within 120 days of receipt of the applicable title XIX or article 43 corporation program initial rate computation sheet. Any modified rate certified or approved pursuant to this paragraph shall be effective the first day of the rate period. If not commenced within 120 days of receipt of the commissioner's initial rate computation sheet, a rate appeal pursuant to this subdivision may be initiated at time of audit of the base-year cost figures upon or prior to receipt of the notice of program reimbursement. Such rate appeals shall be recognized only to the extent that they are based upon mathematical or clerical errors in cost and/or statistical data originally submitted by the facility, or revisions initiated by a third-party fiscal intermediary or, in the case of a governmental facility, by the sponsor government, or mathematical or clerical errors made by the Department of Health. Such notice of appeal must be presented in writing prior to or at the exit conference for such audits.