Under the Clery Act, colleges and universities have to disclose to the public (and prospective students and their families in particular) information on crimes that have occurred on campus. It's to prevent schools from glossing over violence and sexual crimes to protect enrollment. Violations and incur fines and/or result in the suspension of the insitution's ability to accept federal financial aid monies.
I suppose it would depend on the language, but it seems logical to me that if school officials either actively covered up crimes that occurred on campus or neglected to report them that they would be in jeopardy under the Clery Act as well.
It seems to me this sad story is going to have an effect far beyond what happens to Penn State's football program. If you were a parent, would you allow your son or daughter to attend a university where things like this were allowed to happen? The crimes were not against college students, but you just don't know what else is being covered up or brushed aside. I hope people in PA asking these questions to themselves and don't just continue to offer the unconditional support that we heard from Spanier and saw from the idiot students last night. I hope we hear some outrage on Saturday if and when Paterno, McQueary and their team take the field.