Government inspectors examined procedures at a Calderdale nursery after a child went missing on a trip.
Ofsted was notified by Hipperholme Private Day Nursery themselves about the incident that happened on October 7, 2017.
The nursery was inspected on October 12 and was given an overall rating of inadequate and in two areas - .effectiveness of the leadership and management, and personal development, behaviour and welfare.
However, it was rated good in two areas including quality of teaching, learning and assessment, and outcomes for children.
Robert Preston, owner of the nursery based on Denholme Gate Road, said they pride themselves of being open and welcome scrutiny from Ofsted, hence why they notified the watchdog.
"In no way do we dispute the incident occurred and we reported it ourselves to Ofsted and to the local authority before anyone else.
"We welcome the scrutiny by Ofsted and all child care providers should be scrutinised."
At the nursery parents are can have access to the 20 webcams on site. They are also able to visit the nursery at any time and see any part.
Mr Preston stressed that one individual member of staff has been removed from their post and is no longer employed by them.
He also highlighted the exciting work that was going on at the nursery which was also highlighted in Ofsted's report.
The nursery is in the process of turning it into a Scandanavia forestry school which Mr Prestion says is unique to the north of England.
"We are creating a very unique and individual nursery which prides itself on openness with parents. We have found that this type of child care helps children thrive best when they are in the natural elements.
"We are very positive of the future and position we are in."
Ofsted Inspector Frank Kelly said in his report of the nursery must ensure that staff fully understand and implement the procedures in place for keeping children supervised and safe when on outings
In his report he said: "On a recent outing, staff failed to ensure they maintained rigorous supervision and an accurate knowledge of a child's whereabouts.
"The owners informed Ofsted promptly of this incident. However, this lack of supervision placed a child at risk and compromised their well-being.
"Staff are familiar with the steps they need to take to report concerns in order to keep children safe.
"The nursery premises and equipment are well maintained. They are very secure and children are well supervised within the nursery."
Mr Kelly did praise work that was being done at the nursery.
"The owners have a clear vision for the future. Since the last inspection, they have embarked on an ambitious programme to develop the environment, ethos and quality of the service they offer."
"The key-person system is very effective. Staff visit the children's homes as one of the ways they help them prepare to start at nursery.
"This promotes children's emotional well-being. They are at ease with staff and happy and content within the nursery.
"Children are cared for by high numbers of staff who have a wide range of childcare qualifications and experience. Teaching is good across the provision and children of all ages are making good progress."