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Report of the Special Investigative Counsel Regarding the Actions of the Pennsylvania State University Related to the Child Sexu ReportoftheSpecialInvestigativeCounsel RegardingtheActionsofThe PennsylvaniaStateUniversityRelatedto theChildSexualAbuseCommittedby GeraldA.Sandusky FreehSporkin&Sullivan,LLP July12,2012 TABLEOFCONTENTS ScopeofReviewandMethodology..........................................................................................8 IndependenceoftheInvestigation.........................................................................................11 ExecutiveSummary...................................................................................................................13 Findings Recommendations for University Governance, Administration, and the Protection of Children in University Facilities and Programs TimelineofSignificantEvents................................................................................................19 Chapter 1:The Pennsylvania State University – Governance and Administration...........................................................................................................................31 I. KeyLeadershipPositions A. President B. ExecutiveVicePresidentandProvost(“EVP Provost”) C. SeniorVicePresidentFinanceandBusiness(“SVP FB”) D. GeneralCounsel II. PrincipalAdministrativeAreas A. UniversityPoliceandPublicSafety(“University PoliceDepartment”) B. OfficeofHumanResources(“OHR”) C. DepartmentofIntercollegiateAthletics(“Athletic Department”) D. Outreach III. AdministrativeControls A. PoliciesandProcedures B. OversightandInternalControls ii Chapter2:ResponseofUniversityOfficialstotheAllegationofChild SexualAbuseAgainstSandusky–1998................................................................................39 I. Sandusky’sAssociationwithPennState A. Sandusky’sCriminalActivity19951998 II. EventsofMay3,1998attheLaschBuilding III. InvestigationofSandusky1998 A. May4–6,1998:PoliceReport,InitialInvestigation andPsychologicalEvaluationoftheVictim B. May7–9,1998:ASecondEvaluationoftheVictim C. May1219,1998:PoliceOverhearSanduskyAdmit toShoweringwiththeVictim D. LateMay1998:DistrictAttorney’sDecisiontoNot ProsecuteSandusky E. June1,1998:UniversityPoliceSpeakwithSandusky IV. InvolvementofUniversityOfficialsintheSandusky Investigation A. May4–30,1998:NotificationsandUpdatesto Spanier,Schultz,PaternoandCurley B. June1–10,1998:ReporttoUniversityOfficialson SanduskyInterviewandCaseClosure C. 2011GrandJuryTestimonyofSpanier,Schultz, PaternoandCurley D. UniversityOfficialsDoNotNotifytheBoardofthe SanduskyInvestigation E. Sandusky’sCriminalActivity1998–2001 Chapter3:Sandusky’sRetirementfromtheUniversity–1999.......................................55 I. Sandusky’sDecisiontoRetire II. NegotiatingtheAgreement III. Sandusky’sRetirementAgreement Chapter4:ResponseofUniversityOfficialstotheAllegationofChild SexualAbuseAgainstSandusky–2001................................................................................62 iii I. Janitors’ObservationsofSandusky–2000 II. McQueary’sObservationsofSandusky–2001 III. UniversityLeaders’ResponsetoMcQueary’sObservations A. February11,2001: PaternoReportsSandusky IncidenttoSchultzandCurley B. February11,2001:SchultzDiscusses“Reportingof SuspectedChildAbuse”withUniversity’sOutside LegalCounsel C. February12,2001:InitialResponseofSpanier, SchultzandCurleytoSanduskyIncident D. SchultzandCurleyMeetwithMcQueary–February 2001 E. February25,2001:Spanier,SchultzandCurleyMeet AgaintoDiscussSanduskyIncident F. February27,2001:CurleyProposesRevised ResponsetotheSanduskyIncident IV. CurleyMeetswithSandusky–March1998 V. March19,2001:CurleyMeetswithSecondMile Leadership VI. UniversityOfficialsDoNotNotifytheBoardofthe SanduskyIncident VII. Sandusky’sCriminalActivityAfter2001 Chapter 5:Response of University Officials to the Grand Jury Investigation–2010,2011.........................................................................................................80 I. SubpoenasIssuedfortheGrandJuryTestimonyofSenior UniversityOfficials A. LawEnforcementInterviewsofUniversityPersonnel II. PatriotNewsArticleRevealsSanduskyInvestigation– March2011 III. BoardofTrusteesMeeting–May2011 iv IV. UniversityResponsetothePresentmentandCriminal ChargesAgainstSandusky,SchultzandCurley–October andNovember2011 A. Baldwin,SpanierandGarbanLearnofPresentment andCriminalCharges–OctoberandNovember2011 B. BoardofTrusteesConferenceCall–November5, 2011 C. BoardofTrusteesMeeting–November6,2011 D. BoardofTrusteesConferenceCall–November8, 2011 E. BoardofTrusteesMeeting–November9,2011 Chapter6:BoardofTrustees...................................................................................................97 I. BoardStructureandResponsibilities II. TheBoard’sDutyofOversightandReasonableInquiry A. TheBoard’sFailureofOversightandReasonable Inquiryin1998and2001 B. TheBoard’sFailureofReasonableInquiryin2011 Chapter7:Sandusky’sPostRetirementInteractionswiththeUniversity..................103 I. Sandusky’sOngoingContactswiththeUniversity A. Sandusky’sContinuedAccesstoUniversityFacilities B. Sandusky’sContinuedAccesstotheNittanyLion ClubatBeaverStadium C. Sandusky’sFootballCampsatUniversityCampuses D. Sandusky’sContinuedBusinessDealingswiththe University E. FailuretoProhibitSandusky’sAccesstoUniversity Facilities II. Sandusky’s PostRetirement Involvement in Second Mile Activities A. PennStateandtheSecondMileOrganization B. “CollaborativeRelationship”betweenPennStateand SecondMile v C. SecondMileCampsonPennStateCampuses Chapter 8:Federal and State Child Sexual Abuse Reporting Requirements............................................................................................................................110 I. TheFederal“CleryAct” A. CampusSecurityAuthorities(“CSAs”) B. CollectingCrimeStatistics C. IssuanceofTimelyWarnings D. PreparationofanAnnualSafetyReport II. TheUniversity’sFailuretoImplementtheCleryAct III. PennsylvaniaChildSexualAbuseReporting Requirements IV. ImplicationsoftheUniversity’sFailuretoReport AllegationsofChildSexualAbuse V. ImprovementsinCleryActComplianceSinceNovember 2011 Chapter 9:The Protection of Children in University Facilities and Programs....................................................................................................................................120 I. University Policies for the Protection of NonStudent Minors A. AD 39, Minors Involved in University-Sponsored Programs or Programs held at the University and/or Housed in University Facilities B. HR99,Background Check Process II. ImplementationoftheUniversity’sChildProtection Policies III. UseofUniversityFacilitiesbyThirdPartiesforYouth Programs Chapter 10:Recommendations for University Governance, Administration,andtheProtectionofChildreninUniversityFacilities andPrograms............................................................................................................................127 1.0 PennStateCulture vi 2.0 AdministrationandGeneralCounsel:Structure, PoliciesandProcedures 3.0 BoardofTrustees:ResponsibilitiesandOperations 4.0 Compliance:RiskandReportingMisconduct 5.0 AthleticDepartment:IntegrationandCompliance 6.0 UniversityPoliceDepartment:Oversight,Policiesand Procedures 7.0 ManagementofUniversityProgramsforChildren andAccesstoUniversityFacilities 8.0 MonitoringChangeandMeasuringImprovement Appendices AppendixA–Exhibits Appendix B – Pennsylvania State University Policies:AD 67, AD72,HR99 vii SCOPEOFREVIEWANDMETHODOLOGY Freeh Sporkin & Sullivan LLP, (“FSS”), was engaged by the Special Investigations Task Force (“Task Force”) on behalf of The Pennsylvania State University’sBoardofTrustees(“Board”or“Trustees”)aasSpecialInvestigativeCounsel onNovember21,2011.AsSpecialInvestigativeCounsel,FSSwasaskedtoperforman independent,fullandcompleteinvestigationof: TheallegedfailureofPennsylvaniaStateUniversitypersonneltorespondto, and report to the appropriate authorities, the sexual abuse of children by formerUniversityfootballcoachGeraldA.Sandusky(“Sandusky”); The circumstances under which such abuse could occur in University facilitiesorundertheauspicesofUniversityprogramsforyouth. In addition, the Special Investigative Counsel was asked to provide recommendations regarding University governance, oversight, and administrative policies and procedures that will better enable the University to prevent and more effectivelyrespondtoincidentsofsexualabuseofminorsinthefuture. To achieve these objectives the Special Investigative Counsel developed and implementedaninvestigativeplanto: Identify individuals associated with the University at any level or in any office,whoknew,orshouldhaveknown,oftheincidentsofsexualabuseof childrencommittedbySandusky,thesubstanceoftheirknowledge,andthe pointatwhichtheyobtainedthatknowledge; Examine how these incidents became known to, and were handled by, University Trustees, staff, faculty, administrators, coaches or others, with a The members of the Special Investigations Task Force are: Chairman, Kenneth C. Frazier,Chief ExecutiveOfficerandPresident,MercK&Co.,Inc.;ViceChairman,RonaldJ.Tomalis,Secretaryofthe PennsylvaniaDepartmentofEducation;H.JesseArnelle,Attorney;GuionS.Bluford,Jr.,Ph.D.,Colonel, UnitedStatesAirForce(retired);MarKH.Dambly,President,PennroseProperties,LLC;KeithW.Eckel, SoleProprietorandPresident,FredW.Eckel&SonsFarms,Inc.;DanielR.Hagen,Ph.D.,ImmediatePast Chair, The Pennsylvania State University Faculty Senate, Professor, College of Agricultural Sciences; Rodney P. Hughes, Doctoral Student, The Pennsylvania State University; Karen B. Peetz, Chairman, Board of Trustees, The Pennsylvania State University, Vice Chairman and Chief Executive Officer,
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