Solution:

1) Click the 'Reports' tab in the Database window.
Reports tab
2) Select the desired report from the list box. (The selected report is highlighted.)
3) Click 'Design'. (The selected report appears in the Design view, and the floating Toolbox appears.)
4) To set the properties of the report:
NOTE: The following actions are to set the properties of the report only, not controls or a section of a form.

a) Click the report selector.
Click on report selector.
b) Select the 'View' menu and select 'Properties'. (The property sheet appears.)
Report property sheet
c) Make the desired selections and entries for the report.
d) To close the property sheet, click the 'X' in the upper-right hand corner of the property sheet.
Click X button to close property sheet

NOTE: The properties will be saved only when the design view is saved.