Exactly. Spanier is taking a lot of heat as he wrote that not reporting it would make the university "vulnerable" down the road if the abuse allegations surfaced. The only concern was the vulnerability of the school's reputation, and not the vulnerability of the disadvantaged boys, signing up to participate in Second Mile.
On a side note it shows the incredible power Paterno and the athletic department held at PSU. While Spanier was originally prepared to report the incident, he made a 180 degree turn, based on the implied recommendation of the coach.