The NCAA cut the school's football scholarships and accepted Colorado's self-imposed recruiting limits, including reducing the number of visits by recruits from 61 to 51 during this school year.
Neuheisel, now Washington's coach, was barred from off-campus recruiting until May 31.
The improper recruiting contacts began during the 1995-96 school year and ended in 1998-99. The NCAA's infractions committee ruled that Colorado didn't properly monitor its football staff.
"This was a serious case in which a football coaching staff, led by the former head football coach, in a calculated attempt to gain a recruiting advantage, pushed beyond the permissible bounds of legislation, resulting in a pattern of recruiting violations," the committee's ruling said.
During a 12-hour hearing in August, Neuheisel told the committee he and his staff had accidental encounters with prospects on high school campuses -- called "bumping" -- and that Colorado did not gain a recruiting advantage as a result.
Other alleged violations included letting recruits keep cold-weather gear and other apparel, improper use of private aircraft, and excessive compensation to recruits up to $36.76.