Is being notified by email really the only way to be made aware of a reported post? This can't be true can it? There is the notifications list that pops up for all sorts of things. but not reported posts that the mods should know to look into?

Currently that is the case. A sub-system of notifications has been started - as you notice - which we do plan and want to expand and improve upon in the work we are currently doing (version 6) which would include post reporting so, hopefully, we will get there at some point in the development cycle.

That would be great. A notification center would be a huge help. 

Fingers crossed we can get it done...

Here's maybe a simple way to deal with reported posts. When something is reported it could enter a topic in a forum that only moderators can view. Or moderators and the person reporting the post.

We set up a forum for Moderation Q&A where members can only view/reply their own topics. And moderators can view/reply all topics. Not really a notifications center but it could serve the function for reported posts. 

We can certainly throw ideas like this into the mix when the time comes to make the changes...