The inverse problem of identifying dipolar sources with time-dependent moments, located in a bounded domain, via the heat equation is investigated, by applying a heat flux, and from a single lateral boundary measurement of temperature. An uniqueness, and local Lipschitz stability results for this inverse problem are established which are the main contributions of this work. A non-iterative algebraic algorithm based on the reciprocity gap concept is proposed, which permits to determine the number, the spatial locations, and the time-dependent moments of the dipolar sources, Some numerical experiments are given in order to test the efficiency and the robustness of this method,