COUNCIL bosses are monitoring the financial stability of outside organisations who receive a total of £40m to deliver vital frontline services.

Officials warn in a new report that as resources become scarce it is crucial to keep a close eye on third parties who play a key role and rely on council funding.

Local authority leader Stephen McCabe says it's been a difficult year for many of the organisations and they are starting to feel the heat from local authority cutbacks.

There are fears that any financial collapse could cause serious knock-on effects for services.

A large number of frontline services like health care, job training, regeneration, social care and leisure are carried out by 80 external providers funded by the council.

The policy and resources committee were told in a report that where financial difficulties surface, the council will step up to provide support.

Convenor Cllr McCabe said: "I think it is fair to say that this year a fair amount of our providers are struggling with funding pressures and governance.

"But it is happening right across the country.

"Resources are an issue."

The report sets out the amount of money each provider will receive next year and measures in place to govern their performance.

In 2018/19 Inverclyde Council has agreed £42m worth of grants, commissions and contracts for service provision.

Inverclyde Community Development Trust receives £3.8m to deliver employability and heritage projects, regeneration schemes and volunteering.

In January they closed down their home support service as it was running at a loss.

Urban regeneration agency Riverside Inverclyde are to receive £900,000.

Inverclyde Leisure will be awarded £1.6m after taking a cut in grants from the council, forcing them to put up prices for customers.

The council also pays to commission places in nursing homes across the district and elsewhere, with Balclutha Court receiving £1.7m and Kincaid House £1.8m.

Care support service contractors - like Quarriers (£3.1m), Cottage Care Richmond Fellowship (£1.8m), Greenock Medical Aid (£1m) and Karma Healthcare (£1.4m) are also on the expenditure list.

Other outside bodies, like the Beacon (£254,000) and community care forum Your Voice (£214,000) also attract grants.