For me, hearsay does not provide enough of an obligation for conducting an action packaged with the consequences of the action of reporting Sandusky had the hearsay been false.
Paterno reports Sandusky and Sandusky's life is ruined; regardless of whether the allegations had any merit. Nobody walks away from pedophilia accusations. I think Paterno did the right thing in reporting this in house (while I think the GA did the wrong thing by not going to the police, since he actually witnessed the act) in the expectation that an investigation would be carried out internally.
From the Grand Jury report, it seems that Curley and Schultz ostensibly took the initial steps that would make both Paterno and the GA think that an investigation and inquiry was occurring. Paterno did not follow up. I do not see that as some terrible fault.
He certainly could have forgotten, could have become pre-occupied with his duties as the HFC, could have just assumed that they had investigated and found something suspicious but not malicious, which is why Sandusky was not to use the facilities (although that was unenforceable). Paterno certainly is not going to approach Sandusky and ask about the investigation and/or event in question once he has reported it (if there is an investigation, would this count as interfering in said investigation). Paterno could have asked Curley and Schultz, but maybe he assumed that since Sandusky was still around, that there was nothing to the allegations.
