You need Pandoc and LaTeX installed. If you want to compile SVG diagrams, you'll also need Inkscape.
Change into report and type make. The result is in
build/report.pdf.
Here is an example build.
The report is derived from this template which is MIT licensed.
Copy report.md to my_report.md (or whatever you want to call it).
The make command will now also produce your report in
build/my_report.pdf.
All .svg images (Inkscape graphics) gets converted to PNG files in
the build/ folder. Those images can then be used in the document,
e.g.

The letter template works very much like the report. Any custom
adjustments can be made to static/tufte_template.tex. It is derived
from this template
which is MIT licensed.