I agree with everyone who has already said it - what an awesome program!
I have a friend who runs a horse rescue and she expanded her program from strictly horses to a community outreach sort of thing several years ago. She runs daycamps, 4H club stuff and programs where juvenile offenders, foster kids, and developmentally disabled kids get to spend time at her stables. It's great for the horses who usually arrive in pretty rough shape and need all the TLC and attention they can get and great for the kids who need to feel useful and able to bond with an animal who doesn't judge them like a person might.
I see nothing but positive in letting inmates prepare these dogs for adoption. It must feel great to have something to do, to get a sense of accomplishment and have a dog just accept you and be glad to see you. Therapeutic for the dogs and the inmates.