Please, for the love of God, tell me you really are not this simple. Jopa knew, specifically, that a key person on his staff was having hide the sausage parties in the shower with children. But you think he was powerless to do anything about it? Dear God. Jopa could have got a cafe worker fired if he wanted to; he most certainly could have fired a football coach.
I love how you keep coming back to this... first, you're being patently indelicate, and probably thinking your being clever, by constantly referring to these "hide the sausage parties." If you want to be taken seriously, how about you talk like an adult an simply reference things like "sexual misconduct" or "child molestation." Really, we don't need the descriptive references.
Secondly, it's been reported, multiple times, that McQueary never reported that he witnessed anything along the lines of what you are stating. What was reported by McQueary to Paterno (remember, Paterno was never an eye-witness to anything) was that he saw some "horseplay" between Sandusky and the victim. Paterno was never told that anyone had witnessed inappropriate child sexual molestation, or any sort of actual sexual contact, between Sandusky and any victim. No, he was only told there was some "horseplay" that made McQueary uncomfortable enough he felt the need to report it. And on this report, Paterno acted.
Let's also not forget that Sandusky "retired" as Defensive Coordinator in 1999, two years before the 2001 incident. It was not Joe Paterno who allowed Sandusky to remain on campus, or allowed him access to any of the facilities. It was the administration who gave Sandusky access, mostly due to his efforts with the Second Mile foundation. At this point, Sandusky was on campus more as a representative of his charity than anything to do with the football team. As a tenured employee who oversaw a large charitable organization, this was something allowed to Sandusky over and above anything to do with Paterno or the football program. The fact that Sandusky was able to use the facilities in 2001 was not, in any way, something permitted by Paterno. It was granted to Sandusky from the administration.
So... despite what you might believe from watching televised dramas, NO person who hears a report of possible "horseplay" is going to make the jump to full-on sexual misconduct. No... you would express your concerns to the administration and you would expect your superiors to do their jobs. At most, we can blame Paterno for not going over the heads of the administration, if he felt they weren't doing enough, and calling law enforcement... but that's as far as he could go. He couldn't fire Sandusky, he was already retired and not working for the football program. So what else should he do?