(1) Fix minimum standards of service and efficiency to be required of the local governmental authorities in carrying out the functions reposed in them by law;
(2) Provide for the termination of any grant-in-aid to any such authority whenever the department shall find that such minimum standards are not being complied with; and
(3) Require that as a condition of receiving grants-in-aid the local units of government shall bear specific proportions of the total expense of performing the designated functions.