Audit of USAID/Haiti's Leveraging Effective Application of Direct Investments Program

This audit report examines USAID/Haiti's Leveraging Effective Application of Direct Investments (LEAD) program, a $12 million initiative implemented by the Pan American Development Foundation (PADF) from 2011-2015. The program aimed to create jobs and attract foreign investment through business-plan competitions and matching grants for small and medium-sized enterprises (SMEs).

The audit found significant shortfalls in program performance. After nearly three years of implementation, the program had awarded only 12 matching grants totaling $1.9 million instead of the expected 40 grants worth $5.5 million. Job creation was particularly disappointing, with only 637 jobs created compared to the target of over 13,000.

Several factors contributed to these poor results, including staffing problems, poor quality business plans requiring extensive remediation, lengthy review processes, and Haiti's difficult business environment. The program also failed to effectively engage the Haitian diaspora in the United States and did not adequately track cost-sharing requirements.

The audit made nine recommendations to improve program effectiveness, including focusing on high-impact activities, setting realistic job creation targets, conducting performance evaluations, and developing better strategies for diaspora engagement.