Norton excels in financial metrics exceeding charter school standards

During the San Bernardino County Board Meeting held on March 10, 2025, significant discussions centered around the financial health of Noren Language and Science Academy, particularly in relation to its bond financing and financial metrics. The meeting highlighted the academy's impressive financial performance, which is crucial for its ongoing operations and future growth.

A financial advisor specializing in charter school financing presented an overview of Noren's financial ratios, which are critical indicators for investors and authorizers. The advisor noted that Noren's debt service coverage ratio stood at 2.42 times for the fiscal year 2024, far exceeding the minimum requirement of 1.1 times. This ratio indicates that the academy generates sufficient net income to cover its debt obligations, reflecting strong financial stability.

Additionally, Noren reported $9.7 million in unrestricted cash and investments, translating to 162 days of cash on hand. This figure also surpasses the minimum requirement of 45 days, showcasing the academy's liquidity and ability to manage expenses effectively. The advisor emphasized that Noren has consistently exceeded these financial metrics for the past five years, reinforcing its reputation as a model charter school within the industry.

The meeting also featured feedback from Naveen, a prominent investor in charter schools, who expressed admiration for Noren's financial management. Naveen's comments underscored the academy's strong standing among its peers, with a request for Noren's executive team to assist other schools in improving their financial practices.

Board members responded positively to the presentation, with Member Mancha expressing satisfaction and admiration for Noren's program. The discussions during the meeting not only highlighted Noren's financial achievements but also emphasized the importance of sound financial practices in ensuring the sustainability and success of charter schools.

As the meeting concluded, the board acknowledged the significance of Noren's financial health in the broader context of charter school operations in San Bernardino County. The positive feedback and recognition from investors suggest a promising future for Noren, as it continues to set benchmarks for financial excellence in the charter school sector.