FYI, Sandusky had retired from coaching in 1999 & the incident reported to Paterno happened in 2002. So, Sandusky was no longer on his staff. Not that that excuses Paterno.
(Sandusky has access to the Penn State facilities for his charity work after he retired.)
Sandusky was on the staff at the time of the 1998 incident and investigation.
Sandusky didn't retire. We now find out that Sandusky was forced out after the first time that Penn State found out that he was molesting young boys. And he was then given coach emeritus status, and an office, with keys to athletic facilities, and was allowed to bring boys to Penn State events and to athletic facilities after hours.
And his charity work consisted of . . . how do I put this lightly? . . . 'anally raping' ten-year-old boys in the football showers as part of The Second Mile program. That was in 2002. The incident was reported to Paterno the morning after it happened. Paterno waited until the next day to report it to Curley, the Director of Athletics.
And it was never reported to the University Police or any police, and Sandusky was permitted to keep his keys to athletic facilities.