Compliance concerns hotline, website always open

Compliance concerns hotline, website always open

The University community is reminded that concerns related to financial, human resources, athletics, research and affirmative action issues can be filed anonymously 24 hours a day, seven days a week to Compliance Concepts Inc. (CCI) at 800-560-1637 or

Notifications of reports received by CCI are sent to the University's Office of Internal Audit for review. Financial matters are investigated by the Office of Internal Audit, and non-financial matters are directed to the appropriate University department for action. Included in the area of athletic issues are matters related to the Athletics Integrity Agreement and any of the areas listed in that agreement with respect to Athletic Department policies and procedure, NCAA constitution and bylaws, the Big Ten handbook, and matters related to the principles regarding institutional control, responsibility, ethical conduct and integrity. This system also allows for University personnel investigating the concern to ask questions of the person making the report. All reports are thoroughly investigated until there is a final resolution and resolutions are issued through CCI's secure online system.

The use of CCI's services allows for the anonymity of the individual reporting the concerns to maintain an ethical workplace without fear of retaliation. At the same time, it allows the pertinent details of the concern to be fully investigated by the University and corrective action to be taken if needed. Individuals are assigned a unique code that will allow them to follow up to determine the outcome of their concern or to provide additional information if they choose to do so.

NCAA task force sets timeline for endowment fund

The task force charged by the NCAA to set up policies for the endowment being created from the $60 million NCAA-imposed fine against Penn State met Dec. 3 and reports that an administrator of the fund will be selected by spring.

At the NCAA’s request, Penn State will set aside the first $12 million installment of the fine on Dec. 20 in a money market account to allow sufficient time for the task force to develop policy recommendations that will govern the endowment’s structure and operational philosophies.

As part of the consent decree issued by the NCAA in the wake of child abuse charges against Jerry Sandusky, the NCAA mandated that Penn State become a national leader to help victims of child sexual assault across the nation. Specifically, the University will pay $12 million a year for the next five years into a special endowment created to fund programs for the detection, prevention and treatment of child abuse.

For more information from the NCAA about the Dec. 3 meeting and progress made, visit or go to

Monitor announces delivery of first quarterly report to Penn State, the NCAA and the Big Ten Conf.

Monitor announces delivery of first quarterly report to Penn State, the NCAA and the Big Ten Conf.

Senator George J. Mitchell and his law firm, DLA Piper LLP (US), announced that today he has delivered his first quarterly report as the independent athletics integrity monitor under the athletics integrity agreement dated August 28, 2012 among The Pennsylvania State University, the National Collegiate Athletic Association, and the Big Ten Conference.

The first report describes Penn State’s progress during the initial 90-day period under the AIA in implementing both the integrity program required by the AIA and recommendations for reform that were set forth in the July 2012 report by Freeh Sporkin & Sullivan LLP.  The Freeh report concerned allegations of sexual abuse of minors by Gerald A. Sandusky, a former assistant football coach at Penn State.  The monitor’s report concludes that Penn State has made significant progress in implementing the required reforms during this initial period while also recognizing that much work remains to be done.

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Penn State announces 2011 compensation for former president Spanier

UNIVERSITY PARK, Pa. -- Penn State today (Nov. 28) released details of former President Graham Spanier’s compensation for calendar year 2011, including a severance package established in his earlier employment agreement and triggered by his removal from office on Nov. 9, 2011.

The University reported total taxable income for Spanier of $3,255,762 in 2011.  This includes his $700,000 annual salary; and $82,557 of taxable benefits, as well as non-recurring compensation of $2,473,205 that Spanier was contractually entitled to under the terms of his 2010 employment agreement. Such non-recurring compensation includes contractually entitled severance payments of $1,225,000 and $1,248,205 of deferred compensation earned over Spanier's 16-plus years as University president.  Actual payment of the net amount of the deferred compensation after required tax withholdings ($860,637) will be deferred until June 2017.

The severance package also will be included in information provided in the University’s Right to Know form to be filed with the state in May 2013.

Penn State officials provide update on Freeh report recommendations

Penn State officials provide update on Freeh report recommendations

Penn State officials today provided the second update on the 119 recommendations made to the University in a report by the Freeh Group, noting that more than one-half of the recommendations have been completed to date. The number of completed recommendations includes several that are categorized as “Ongoing/Continuous,” signifying that by their nature, the University’s response to such recommendations will be ongoing.

“We continue to make great progress in assessing and implementing the Freeh report recommendations,” said Penn State President Rodney Erickson. “I’m pleased with the strong collaboration that has been demonstrated across all of our departments and proud that in just four months, we have been able to complete half of the recommendations.”

The 119 Freeh recommendations were made as a result of an independent internal investigation performed by Louis Freeh in the wake of the sexual abuse scandal of former retired assistant coach Jerry Sandusky. The recommendations are intended to strengthen University policies and performance in areas such as safety and governance. As officials have previously noted, each of the recommendations has been assigned to one or more individuals within the University administration for review, analysis and possible implementation, and each area will receive oversight and progress monitoring by one of the standing committees of the Board of Trustees. University officials have said they intend to implement the Freeh recommendations by the end of 2013.

A complete update of status and actions Penn State has taken based on the recommendations is available here and will be updated monthly.

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