E.D.
T., just so you know, the state laws regarding child care require that question to be asked of all parents on the enrollment paperwork regardless of whether or not the caregiver actually ever takes the kids anywhere. That being said, DO NOT let this slide. That is considered gross misconduct on the part of the caregiver and should absolutely dealt with by the proper authorities.
You need to contact the Texas Department of Family and Protective Services. Their contact information is here:
http://www.dfps.state.tx.us/Contact_Us/Inquiries_and_Comp...
I agree that it's always a good idea for any parent to drop in unannounced, and a good caregiver will encourage you do just that. These people have proven themselves untrustworthy with your most precious commodity, and I'd hate to think what they thought they could get away with in the future with someone else's child if this isn't dealt with.