A CRISIS-HIT care service in the Borders has recorded losses of more than £3 million during last year.

SB Cares provides support and other services for around 12,000 clients across the region.

But the Limited Liability Partnership (LLP) organisation, which employs around 870 staff, has been plagued by damning inspections and fall-outs ever since it was launched just over four years ago.

And a review is currently ongoing with an option for Scottish Borders Council to dissolve the arms-length organisation and take back control.

In a financial statement which was published last week it has emerged SB Cares has continued run at a loss.

Its SB Supports side of the business recorded a deficit of over £250,000 while the SB Cares services ran up losses of £2.85 million.

Auditor Hugh Harvie, on behalf of KPMG, stated: "We draw attention to the profit and loss account of the financial statements which indicates that the LLP incurred a net loss of £2,851,000 for the year and had net current liabilities of £7,556,000, and the LLP’s ability to continue as a going concern is dependent upon continued funding from Scottish Borders Council and Borders’ Integration Joint Board, which is in turn dependent upon the outcome of a strategic review being undertaken within Scottish Borders Council.

"These events and conditions, along with the other matters explained in the accounting policies, constitute a material uncertainty that may cast significant doubt on the LLP’s ability to continue as a going concern."

A funding agreement is in place for SB Cares to continue providing services until next March.

But councillors are being recommended to approve plans for the local authority to take direct control again from December.

A spokesman stated: "Scottish Borders Council and Borders’ Integration Joint Board have indicated their intention to continue to fund the services presently provided by SB Cares at the presently agreed level for 2019/20.

"However, the ability of Scottish Borders Council and Borders’ Integration Joint Board to continue to provide this funding is dependent on the results of the strategic review, resource allocations to the Borders’ Integration Joint Board and board approval."

Assurances have been given to SB Cares staff that any changes in operations will not affect their terms and conditions.