He reported what he heard from an assistant coach to University authorities who should have done something. Paterno, short of being a vigilante and killing the guy himself, had no authority to do anything , except coach a college football team.
He should have fired McQueary for letting a child molestor continue his rape and escape with the victim.
He could have made some effort to find out if the victim was even still alive after being dragged away from the crime scene by the rapist.
He could have demanded that Sandusky be banned from all Penn State events, rather than seated on the dais with his boy victims, or in the president's box for football games.
He could have followed up with police to find out what their investigation revealed.
He could have shared the information he knew with the parents of every child he saw with Sandusky.
There are thousands of things he could have done, rather than tell his boss, witness the squashing of the story and do nothing.
Would you have done more? Would you have expected people you personally know and respect to do more? I would.