ASTORIA, Ore. -- The Clatsop County District Attorney's Office confirmed Friday that it launched a formal investigation into possible missing money at Mary Star of the Sea Catholic School in Astoria.

The archdiocese sent a letter to the priest who oversees the school that said he no longer can sign checks or have control of the school's money.

Walt Postlewait, who has three children attending Mary Star of the Sea Catholic School, said the institution is basically broke.

"My understanding is there is no cash in the school and payroll is borrowed from the archdiocese," Postlewait said. "I believe that something is in discord. That funds were moved somewhere else."

Postlewait recently served on school budget and finance committees. He said he thinks someone at the church has been funneling money and donations earmarked for the private school to other charity projects, leaving the century old school in dire straits.

"If you give money to the school and to specific projects then that money should go to school specific projects," Postlewait said.

In fact, in a recent letter from the archdiocese, local catholic authorities told the priest who oversees the parish and school that his financial administration of the parish has been removed, and he no longer has access to check stock.

Postlewait said he fears his children and the school have been shortchanged.

"You don't fund pet projects when you're trying to keep doors open and teach kids in this community," Postlewait said.

The archdiocese said it recently audited the priest and found money problems, but no criminal wrongdoing or embezzling. The priest couldn't be reached for comment.

Parents Fear Priest Stole School's Money