From what I have read, reports go to both the community moderators and the admins. Also it goes to the admins of the instance the user that makes the report is from. For example, if a user from lemmy.world reports a comment, lemmy.world admins can "remove" it, but it is only removed for users from lemmy.world.
If removed by a moderator or admin from the community/instance the report is about, it is removed for everyone.