Teacher had a sexual interest in children.
A former senior official at an exclusive independent school in Perth says he acknowledged a teacher had a sexual interest in children but did not "process it" as sexual abuse.
The Royal Commission into Institutional Responses to Child Sexual Abuse has also heard the official found circumstances at the school "too hard" to adequately deal with the complaints.
The commission is examining the response of authorities at the school, which cannot be named for legal reasons, to allegations of abuse against a teacher known as YJ.
On Wednesday, the former head of the institution's primary school arm, known as YK, said he did not "unpack" a 2001 letter from a concerned teacher detailing YJ's suspicious behaviour towards certain children at the school.
YK concluded that YJ needed supervision.
"Had a sexual interest in children," YK said in response to a question from council assisting Sophie David.
"But I didn't process it as sexually abusing children."
At the end of 2001, a teacher known as WF sent a letter to YK detailing concerns about YJ - including his touching boys on the stomach and thigh.
He was also observed to have given certain boys presents and money, and in one incident fondled the head of a boy who sat at crotch height to him.
"Is it the case that you actually did realise that what was being raised here was concerns that YJ was sexually attracted to these boys ... but it was too hard for you to deal with it in the circumstances of the school at the time?" Ms David asked.
YK replied: "I believe that captures my situation."
He told the commission he chose not to pass WF's letter to the school's headmaster and did not view it as a formal complaint.
In 2002, YK wrote to YJ in relation to concerns over his making inappropriate references to giving children a good belting and corporal punishment.
YJ received a warning in 2004 after another teacher, WH, placed a letter about his behaviour on file, which YK viewed as a formal complaint.
The commission has established that teachers at the school had raised concerns about YJ as far back as 1999 and until 2004.
When a former student raised sexual abuse allegations against YJ in September 2009, he was dismissed.
YJ was arrested that year on multiple charges of indecent dealing with a child and eventually sentenced to five years in prison.
After a successful appeal, he was again convicted after a retrial in 2012.
YK earlier told the commission he felt he had limited options in dealing with the 2001 letter because WF did not want to be identified and insisted on remaining anonymous.
"I felt I could not act upon the information or take any concrete steps against YJ," YK said on Wednesday.
"Nowhere in the letter was there any allegation of actual sexual abuse."
During his opening statement on Wednesday, YK briefly became emotional and apologised for not acting on WF's letter.
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