1) Reporting means relaying information that others have said using either direct or indirect speech.
2) Direct speech repeats the exact words used without changes, while indirect speech uses reporting verbs and changes the tense and pronouns depending on when the reported information was said.
3) When using indirect speech, the main verb changes to the past tense, pronouns change to reflect who is speaking in the reported information, and adverbs change to show the appropriate tense.