The main objective of this study is to optimize the budget allocation process for various organizational units in the university. For that, university budget allocation system based on multi-level quadratic optimization model is suggested. The objective function of the proposed system is to minimize the sum of the quadratic deviations of each allocation from its lower and upper limits. The proposed system is applied based on the budget of Sohag University as a case study. The results indicate that the proposed system can be used to support decision making for optimal financial planning.