Guys I need to know if I'm crazy

My admin is making me feel crazy. Am I crazy? I had a substitute teacher in my place because all the English teachers had to go to this science of reading thing. When I get back I have a student tell me that the sub told them(14 year old boy) that he's going to hell. She told him this over his nails being painted black. 4 other kids told me the same thing and my next door teacher heard. I put in a report and ask that she never be placed back into my classroom again. My principal is saying saying that reporting is harsh for saying just saying their beliefs. Telling a child they're going to hell for any reason is wrong and I don't think she needs to be in a classroom. They're saying with the report they have to investigate it and this seems like an overreaction and if she gets fired there will be one less sub and they already don't have many subs. I think telling kids they're going to hell is more important. Am I crazy? You don't need to be around children if you're going to say things like that.

Edit: There will be an investigation. The report is in the system so our district sees it and our superintendent will make them investigate. They just wanted me to retract my report