Penn State Continues Settlement Process with Feinberg Rozen

The University announced today, December 21, 2012, that the settlement process initiated by the University with the assistance of Kenneth R. Feinberg and Michael K. Rozen would continue into 2013. “This is a highly complex and sensitive matter that we are committed to completing in a fair, responsible and timely manner” said President Rodney A. Erickson. “We are pleased with the progress so far and remain hopeful that the process will result in settlement of many of the civil cases so that the victims will not have to be drawn through the legal process.”
“Michael and I are encouraged by the constructive dialogue that we have had with various Penn State representatives and lawyers involved in these cases,” said Feinberg. “We look forward to continuing our efforts to help the parties reach a mutually satisfactory resolution of the claims.”
Further discussions among the parties and Feinberg Rozen are scheduled for January.

Penn State Sets Aside First Payment of NCAA Fine

Today (Dec. 20), at the NCAA’s request, Penn State set aside the first $12 million installment of the $60 million fine imposed by the NCAA into a money market account. The deposit into the account will allow sufficient time for the NCAA’s Child Sexual Abuse Endowment Task Force to develop policy recommendations that will govern the structure and operational philosophies of the endowment to be created related to the Consent Decree. The Child Sexual Abuse Endowment Task Force, chaired by University of California-Riverside Chancellor Tim White, will choose a third-party administrator sometime this spring, which will be responsible for the long-term management of the endowment, including the awarding of dollars to programs through the life of the endowment.

This first payment was made by the Athletics Department through an internal loan from the University’s reserves and carries an interest rate of 4 percent for 30 years.  Interest rates and loan durations for the future payments to the endowment will not be determined until each payment is made year-by-year, and will based on interest rates in effect at the time of disbursement and other conditions.

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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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