Ok a detailed explanation on how reports work.
As I said above, when you report a post a new thread is created inside the Moderators Den in a special forum for Reports. When you enter that forum it looks something like this, note that I am only showing 2 of the current reports. One that Derpy created on request from Bolk, and one that Ishan reported because he wanted to ask me a question privately but still have other moderators able to comment.
You can see here that one is marked No Action Taken, which pretty much means it was reviewed and there is not a ToS violation that needs to be dealt with or no thread that needs to be moved. The other is not marked because I was too lazy to mark it.
And here is the report Derpy posted to test the report function. Notice that it provides a link to the thread, the name of the person that posted it, the person that reported it and his comment about the post. If someone else reports the same post, the report is added to this thread instead of creating a new thread.
Once a moderator has reviewed the post he edits the thread title to show the action that was taken.
If a note/infraction is issued, then a thread is created in another forum so that other moderators can review it. Notice it shows the points issued, what it was issued for, and who it was issued to. Gort is the account moderators practice using the modcp on.