The state Department of Children and Families revoked the Red Caboose Day Care Center's child care license Thursday for alleged sexual abuse.
The revocation letter sent by DCF said the Williamson Street nonprofit organization's license was being revoked because someone at the facility "created a condition that directly threatens the health, safety or welfare of any child under the care."
Officials at the child care facility told WISC-TV that they have not received a copy of the letter yet, but have found out about the letter through reports in the media.
On July 8 the state was notified of evidence of sexual abuse of a 2-year-old child in the care of Red Caboose by a volunteer helping at the center, according to the letter.
Officials said in March two employees were notified of the alleged abuse and did not immediately report it to authorities.
The day care center also allegedly allowed the volunteer to continue to help at the center and have contact with the children after administrators were told about the alleged behavior, according to the letter.
The Dane County Department of Human Services reported that a 2-year-old child was sexually abused while in the care of the center, and staff members failed to closely supervise that child to prevent harm and assure safety.
The state said while the center's license is revoked it cannot enroll any new children at the center without written approval of the DCF.
The Red Caboose Day Care Center is one of the longest running facilities in Madison, operating since 1972. Officials at the day care said until this recent incident, the facility has never been cited for major violations.
The facility has received high marks from city and state regulators in recent years. Officials with the facility said a crisis management team will meet Friday to decide what steps the facility needs to take next.
Officials with the day care center have 10 days to appeal the license revocation. However, center officials don't believe the 10 days begin until they receive the letter, which they expect to get Friday.