The grand jury report (pages 8-10 in particular) point out that Schultz was notified by both the graduate assistant and Paterno about the 2002 rape. It is also noted that Schultz “oversaw the police as part of his position.” That’s about as clear as can be.
As for the 1998 investigation, I have no idea what, if any, details Paterno knew. What they knew was that the investigation (wrongly) resulted in no criminal charges but “administrative” actions were taken (the unenforceable ban on bringing children to campus) as well as the unceremonious end to his coaching career. You are again holding Paterno to an impossible standard.
Just for the record it was not reported to ANY police agency.
” Schultz said there was never any discussion between himself and Curley about turning the 2002 incident over to any police agency.”
http://deadspin.com/jerry-sandusky/