Audit flags UMGC Ventures transactions; UMGC reintegrates Accelerad and moves contracts in‑house
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Summary
Legislative analysts summarized an OLA audit that questioned UMGC Ventures’ sale of Helio Campus and identified abandoned IT products at Accelerad; UMGC told the committee it has reabsorbed Accelerad, staffed an internal IT office and will transition major contracts to the university.
A Department of Legislative Services presenter summarized findings from an August 2024 Office of Legislative Audits compliance review of University of Maryland Global Campus (UMGC) entities, saying the audit raised questions about two commercial affiliates and recommended additional reporting.
The audit noted that UMGC Ventures sold a controlling interest in Helio Campus — a data analytics spin‑off — for $26.2 million while retaining a 21.1% stake, and that UMGC could not explain how the buyer or price were determined. The auditor also reported that Accelerad, an information technology spin‑off, had an abandoned IT product costing about $25.7 million and that $11.3 million in contingency fees for other IT services were paid without documentation to justify necessity.
Committee narrative recommended by analysts asked UMGC to provide details on the reintegration of UMGC Ventures and Accelerad, the status of ongoing contracts and efforts to recover original seed investments.
Chancellor Jay Perman told senators UMGC has reestablished an internal office of information technology and "completed staffing it with 175 FTEs," drawing from both external applicants and former Accelerad employees. He said UMGC is managing a comprehensive IT program with an approximate annual budget of $48 million and is transitioning contracts to align with system procurement rules. Perman said two major contracts — one for IT help desk services and another for IT staff augmentation — were moving through the Board of Regents and were expected to go to the Board of Public Works in March; remaining smaller contracts are scheduled to transition by June 30.
Perman and staff said the reintegration seeks to improve student‑facing digital services and reduce outsourced reliance; the Department of Legislative Services asked for further reporting on timelines, onboarding and recovery of seed investments.
