The Department of Energy's (Department) National Renewable Energy Laboratory (NREL) is the only national laboratory dedicated to furthering the development and commercialization of renewable energy and energy efficiency technologies. NREL's mission is to lead the Nation toward a sustainable energy future by developing renewable energy technologies, improving energy efficiency, advancing related science and engineering, and facilitating commercialization. As part of its mission, NREL performs discretionary research and development, more commonly known as Laboratory Directed Research and Development (LDRD). The objectives of the Department's LDRD program include maintaining the scientific and technical vitality of laboratories; fostering creativity and stimulating the exploration of forefront science and technology; and supporting high-risk, potentially high-value research and development. The objective of this audit was to determine how NREL implemented its LDRD program in relation to Department requirements.