NEW YORK, NY January 03, 2008 —REPORTER: Lucille Murray currently serves about 150 children and is slated to be closed next week.

The Administration for Children's Services says it found serious financial mismanagement and fraud at the center.

Elected officials and parents don't dispute that, but say the city should find another group to run the daycare.

Public Advocate Betsy Gotbaum says parents who use the center are worried.

GOTBAUM: They have jobs and they have a very difficult time commuting as it is and what are they going to do with their children when the center closes. They are either going to have to find alternative places which is very hard to do, or they are going to have to not work and nobody wants that.

REPORTER: ACS says there are 165 open daycare slots in the area where children can be transferred. Parents can also get vouchers to pay for private care.