George pleaded guilty to abusing children at the nursery in September 2009 and was jailed indeterminately last December.
The review published today said that while there was no indication that anyone could have "reasonably predicted" that George might be a risk to children, it pointed to a lack of effective external controls and weak management at the setting.
The report states: "The lack of effective external controls, a setting where management was weak, and a blurring of boundaries across several groupings resulted in a situation where the opportunity to abuse was available."
The report also points to a lack of supervision within the nursery, saying there is a more general need to develop effective staff supervision with early years settings.
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