We just use a Request Tracker ticket for every project. (rt3 - http://bestpractical.com/). Subteams use connected child tickets. When we need reporting, we interrogate the ticket database directly via a bunch of postgresql views and queries. Later on, we can relate bugs, issues as separate tickets connecting directly back to their original project ticket.

Managers can and do bookmark the tickets they care about, and can search and categorize by keywords and queues (a queue is a class of ticket). Appends are by simple web interface or by email, with adequate access control.

RT supports more automated magick than our management have been able to so far demand. We have an ODBC bridge so that ticket-based reporting links directly into various Excel spreadsheets used for ERP.

And it's free. And neither I, nor my team(s), need to write status reports :)

PG