Sally Wray, Owner and Manager of Saltergate Kids Club, said the ruling from the inspection in November last year was justified as paper work had not been passed over when the business changed hands.
However she said a mandatory follow up visit showed work was being done to address the issues flagged in Ofsted's report.
She said: "As the new owner of Kids’ Club, I am reassured that all parents are very happy with the care and provision for their children whilst attending the Club.
"The outcome of the recent Ofsted inspection (November 2017) was obviously a disappointment, but justified because of the inadequate paper work which had been passed on during the very recent change (October 2017) of ownership.
"On January 11, an Ofsted inspector visited the site as a follow up measure and was reassured that our evidence of meeting the Welfare Requirements is now firmly in place and therefore we look forward to a re-inspection within six months."
The club, which is run at Saltergate Infant School, is operated by the Saltergate Kids Club Ltd company.
Inspectors found failures in safeguarding including the manager being unaware she needed to check staff's ongoing suitability to work with children.
This also includes any new associations staff may have that could affect their suitability.
Ofsted Inspector, Shirley Maynard, wrote: "Safeguarding is ineffective. The new provider, who is also the manager, has failed to identify or address breaches of requirements.
"In addition, her safeguarding knowledge is weak because she has not completed the required training for a designated lead person."
Staff were also not aware of legislation on how to identify and follow up concerns about children or families at risk of extreme views or behaviour.
No consideration had been given over the risks of mobile phones or cameras being used at the club.