Problem started after adding new clients that were situated across a hard firewall.
From binary log:
Error 2012/04/28 10:01:00 233 System janus Failed to initialise reports system from parameters
Error 2012/04/28 10:01:00 233 System janus Failed when processing report components
Network setup between clients and server was not configured correctly, causing the report to fail when collecting data or communicating with clients.
In this case the problem was that the clients and NetVault server had the port allocation set correctly on NetVault server and clients but the clients were not set to outside firewall within client management on the NetVault server. This can be set by right clicking the client and selecting outside firewall. Note if the only option you see is inside firewall this means the client is already set to outside firewall.
It should be noted that any configuration issue with clients over a firewall could potentially cause a problem like this so I would advise looking at the solution at the URL below that explains how to set up clients over a firewall and follow recommendations.
https://support.quest.com/SolutionDetail.aspx?id=SOL78817