York County, Pennsylvania, agreed to pay the federal government $16 million to settle claims that it inflated the percentage of federal inmates in its county prison population to receive more money for housing illegal aliens.

A U.S. Justice Department audit announcing the settlement reported that York County, operator of one of the nation's largest detention centers for the Immigration and Naturalization Service, under-reported its overall prison population from October 1999 to March 2003.

York County reported an average daily prison population of 996 inmates to the federal government, but told the state the population averaged 1,544, the audit stated. The lower number reported to the federal government made York County's operating cost per inmate and detainee higher. Auditors determined the daily rate paid the county for fiscal year 2000 should have been $37.07 instead of the $60 paid for INS detainees.

York County does not admit any wrongdoing under the settlement.

"We disagree with their characterization concerning that agreement," said Michael Flannelly, York County solicitor, adding that the county settled to avoid expensive litigation. "Given the level of risk that we were facing, we believe it's an appropriate settlement."

In 1995, York County entered an agreement with the INS to house detainees for a daily rate of $50 per detainee. INS agreed to increase the rate to $60 in 2000 based on York County's representation of its per-prisoner operating costs.

During 2000, the year audited, York County housed an average of 729 detainees per day for the INS, another 17 for the U.S. Marshals Service and .4 inmates per day for the Federal Bureau of Prisons.

The agencies paid the county about $17.2 million to house detainees that year and $872,600 for services such as medical care and translators, the audit reported.