Sorry, Mike, I overlooked this question of yours when it got buried by subsequent posts in the “You Asked Me This Question” section before it got marked with a Topic Sticky. (That way it stayed out sight at or near the bottom of all postings in the section.)
A properly attributed quoted or direct speech like the one you presented, “She said, ‘I am going to Baguio next week,’ has a complex sentence structure. The attribution clause, “She said,” is the main or independent clause, while the quoted or direct statement, “I am going to Baguio next week,” is the subordinate or dependent clause. We must always keep in mind that quoted or direct speech is simply a form of a complex sentence, which in this case is in this form: “She said
that she was going to Baguio the following week.” Restating it as a direct statement doesn’t alter this complex structure; it just highlights the direct statement by way putting it within an open and close quote to clearly distinguish it from the attribution clause. There are, of course, grammar rules on how the elements of the direct speech need to be converted into indirect speech. (Read my Forum posting on
“Reported speech needs advanced grammar skills and a quick mind.”)