Raleigh, N.C. — The state auditor said Thursday that the Division of Waste Management got ripped off on a six-figure contract because it did not verify a contractor's paperwork.

The division paid TIRES, Inc. of Winston-Salem $320,000 to produce 20,000 rubber playground mats from old automobile tires, Auditor Les Merritt's office said in a report. The company actually made 5,700 mats, Merritt found.

Merritt said the division, part of the Department of Environment and Natural Resources, should sue to get its money back and should be more careful about verifying what its contractor tell it they did.