LDRLABOR (Distribution Report)

What is LDRLABOR (Distribution Report)?

The LDRLABOR, or Labor Distribution Report, is a critical document for government contractors. It outlines how labor hours and associated costs are distributed across various projects, contracts, and internal cost objectives within an organization. This report is essential for tracking costs, billing clients accurately, and maintaining compliance with government regulations, particularly those enforced by the DCAA.

Definition

The LDRLABOR is a detailed report that breaks down employee time and labor costs, allocating them to specific contracts, tasks, or indirect cost pools. It serves as the primary source document for verifying labor charges billed to the government. Accuracy and transparency are paramount, as these reports are frequently scrutinized during DCAA audits to ensure compliance with Cost Accounting Standards (CAS) and FAR Part 31, which governs contract cost principles and procedures. The report typically includes employee names, hours worked on specific tasks, applicable labor rates, and the corresponding cost allocation. Maintaining a robust and auditable LDRLABOR system is vital for government contractors to avoid potential penalties, disallowed costs, and reputational damage.

Key Points

• Traceability: The report must provide a clear audit trail, allowing auditors to trace labor costs from individual timesheets to the general ledger and ultimately to invoices submitted to the government.
• Accuracy: Data in the LDRLABOR must be accurate and based on verifiable records, such as timesheets approved by supervisors.
• Consistency: The methodology for allocating labor costs must be consistent across all contracts and projects to avoid inconsistencies and potential audit findings.
• Compliance: The report must comply with all applicable Cost Accounting Standards (CAS) and Federal Acquisition Regulation (FAR) requirements related to labor costing and allocation.

Practical Examples

1. Project Cost Tracking: A government contractor uses the LDRLABOR to track labor costs associated with a specific contract. By monitoring these costs, the project manager can identify potential overruns and take corrective action.
2. DCAA Audit Preparation: During a DCAA audit, the LDRLABOR is used to verify the accuracy and allowability of labor costs claimed on government invoices. A well-documented LDRLABOR can streamline the audit process and reduce the risk of disallowed costs.
3. Indirect Cost Allocation: A contractor uses the LDRLABOR to allocate indirect labor costs (e.g., administrative staff) to various contracts based on a predetermined allocation base, such as direct labor hours.