Reporting Child Rape.

Penn State Coach Mike McQueary. He tried.

So who dropped the ball?

"One of the most compelling and disturbing pieces of testimony in this investigation came from an eyewitness to a late-night sexual assault that allegedly occurred in March of 2002, in the locker room of the Lasch Football Building on the University Park Campus," Kelly said. "Hearing what sounded like sexual activity in the showers of a building that was supposed to be empty, a graduate assistant reportedly observed Sandusky sexually assaulting a naked boy who appeared to be about 10 years old."

According to the grand jury, the graduate assistant had returned to the football building that evening to put a new pair of sneakers in his locker and to retrieve some recruiting films, only to be surprised that the lights were on in the locker room and showers were running. The assistant immediately recognized Sandusky.

Kelly said the assistant, who was extremely upset about what he had seen, immediately called his father to relate what he had discovered. Together, the two decided that the assistant should promptly report the incident to head football coach Joe Paterno.

The next morning, the assistant telephoned Paterno and then went to Paterno's home to explain what he had seen. Paterno testified that he then called Penn State Athletic Director Tim Curley and met with Curley the following day, explaining that a graduate assistant had reported seeing Sandusky involved in sexual activity with a young boy in the showers at the Lasch Building.

Kelly said that approximately one and a half weeks later, the graduate assistant was called to a meeting with Curley and Gary Schultz, who was Senior Vice President for Finance and Business at the University. At that time, the assistant again recounted what he had witnessed Sandusky doing to a young boy in the showers of the football locker room.

"Despite a powerful eyewitness statement about the sexual assault of a child, this incident was not reported to any law enforcement or child protective agency, as required by Pennsylvania law," Kelly said. "Additionally, there is no indication that anyone from the university ever attempted to learn the identity of the child who was sexually assaulted on their campus or made any follow-up effort to obtain more information from the person who witnessed the attack first-hand."