The Penn State situation is truly appalling. I taught at colleges for 15 years and have seen first hand how administrators care more about protecting their school's reputation than they do about protecting crime victims.
At one of the schools where I used to teach, Eastern Michigan University, a female student was raped and murdered by an intruder (a non-student who was apparently a stranger to her.) The administration claimed the student had died of an asthma attack! Other students and the community did not know the student was murdered until the local police announced they were charging a man with murdering her. (I imagine the administrators would have preferred that the police not even be involved, but it's kind of hard to keep the police out of a case when there's a dead body.)
The Eastern Michigan University case turned into a huge scandal and several members of the Board of Regents resigned, but I don't think any administrators faced criminal charges, even though the Campus Security Act requires college administrators to notify the public of crimes that occur on campus. If no suspect had ever been caught, Eastern Michigan University might have gotten away with their cover-up.
At least in Michigan, where I live, college employees are not mandated reporters. This is because college jobs typically do not involve contact with children. In the 15 years I taught at colleges (plus several years as a graduate assistant), I was never given any sort of training on what to do if I witnessed or heard of a crime. (Administrators are supposed to report crimes that have taken place, but there are no reporting requirements for rank-and-file employees.) I think this lack of training for college employees is another sign that administrators don't really care about stopping crimes on their campuses. I am not trying to excuse any of the Penn State employees, where the crime involved was extremely severe and it should have been obvious that the police needed to be notified. However, I do believe colleges should be more pro-active and train their employees about what to do if they suspect a crime has occurred, especially since not all crimes are as clear-cut as the ones at Penn State. Hopefully, the Penn State situation will make colleges take crimes more seriously.