The Vatican responded to a leak of confidential correspondence between leaders in a statement issued on Sunday.
The documents reportedly contained evidence of a power struggle within the Church over the decisions of Cardinal George Pell.
The former archbishop was brought from Australia to Italy to solve the Church's financial problems, but some leaders allegedly felt that he was given too much power.
L'Espresso Magazine claimed they received meeting minutes and emails that demonstrated some of the cardinals alleged dissatisfaction with Pell. The Vatican criticised the leak and those responsible for the apparent breach.
"Leaking confidential documents to the media in order to stir up polemics and fuel arguments is nothing new but it is always something to be condemned and is illegal," Vatican spokesman Father Federico Lombardi said.
He added that it is "normal" for institutions to disagree on financial matters, and called the article "undignified and petty."
L'Espresso said that Pell and his agents had accumulated 500,000 euros of expenses in six months, including spending over 2,500 euros on clerical clothing.
A business manager Pell hired from Australia received an apartment in Rome that took tens of thousands of euros to renovate, according to the magazine.
Pell was hired to clean up the finances at the Vatican, which has seen cardinals, Vatican Bank officials, and Financial Information Authority (AIF) directors fired over the past year
In June, Pope Francis fired all five of the Church's AIF directors, and in March, Pope Francis closed several Vatican Bank accounts that he found were unrelated to its mission to "serve with prudence and provide specialised financial services to the Catholic Church worldwide."
In February 2014, Francis enacted multiple accountability requirements, and established a new overseer position, Secretariat for the Economy. Four out of the five Institute for Works of Religion cardinals were fired in January 2014, just 11 months into their five-year terms.
The dismissals were the current administration's means of cleaning house after years of allegations of money laundering, smuggling, and other illegal activity.
Pell is expected to release financial statements for each Vatican department for the first time in the coming months.
