Tip from N.J. inmate leads to discovery of $600,000 error

A tip from an inmate is credited with prompting the audit that uncovered problems at state-funded halfway houses in New Jersey.

Comptroller Matt Boxer says a series of overpayments were made to the 23 facilities the state has contracts with to provide rehabilitative services to inmates who are near the end of their prison sentences.

Boxer said the New Jersey Department of Corrections also failed to sanction the facilities for violating their contracts by allowing some inmates to escape. He said the audit found errors that led to nearly $600,000 in overpayments to the halfway homes over 10 years.

“This is a $64 million program whose success or failure has important consequences for the state and for public safety. It’s critical that the state take a more active role in ensuring the success of these programs,” Boxer said. “We can’t be simply cutting these halfway houses a check and hoping for the best.”

A corrections department representative said Wednesday the department is taking action to correct the problems.