LANGUAGE OF REPORTS 1

Reported Speech
Indirect Speech (also referred to as 'reported speech') refers to a sentence reporting what someone has said. It is almost always used in spoken English.

• If the reporting verb (i.e. said) is in the past, the reported clause will be in a past form. This form is usually one step back into the past from the original. For example:
  
  • He said the test was difficult.
  • She said she watched TV every day.
  • Jack said he came to school every day.
• If simple present, present perfect or the future is used in the reporting verb (i.e. says) the tense is retained. For example:
  
  • He says the test is difficult.
  • She has said that she watches TV every day.
  • Jack will say that he comes to school every day.
• If reporting a general truth the present tense will be retained. For example:The teacher said that phrasal verbs are very important.

Reference: http://esl.about.com/od/grammarintermediate/a/reported_speech.htm