Show hierarchy in Categories widget problem

I’ve chosen the ‘show hierarchy’ option in the Categories widget to display the child categories beneath their parent categories. But the code that displays the child categories does not close the <ul class=’children’> tag causing all following listed items to shift one level down in the hierarchy than they should be.

You can see my test site here. Look at the Categories widget in the left sidebar and you can see that the two child categories (Bowlingshirt.com and C28.com) are properly shifted beneath the Clients parent category.

But after that the News and Podcast parent categories, along with the rest of the widgets in the sidebar are shifted.

I have examined the code on the page with view source and determined that the issue is indeed caused by the <ul class=’children’> not being closed with a after the list of child categories is complete.

Where can I look to fix this and make the needed appear? The best I can find is in category-template.php in the functions get_category_children() and get_category_parents().

But this is escaping me and I’d rather ask for advice before complicating things and modifying core files.

Is anyone else seeing this occur?

Thank you for looking at this with me.
Joel