Offensive foul....free throws?
 

I was running scoreboard for my kid's (10 yr old) basketball game last night and this happened.(blowout game... no effect on outcome).
Player on Team A in possesion of ball commits offensive foul (pushing off with arm while dribbling). This make seven team fouls on team A.
Guy keeping book informs officials of seventh accumulated foul.
Referee (licensed IHSAA referee) awards Team B 1+1.
I tell bookkeeper I didn't think that was correct (I am a baseball umpire but not an expert at basketball) . I thought it was just loss of possession.

1) was I correct ?
2) if so, could someone give me a specific rule reference?
3) is it proper for timekeeper or scorekeeper to notify referee if he /she sees a mistake such as this?
Thanks in advance.

1) yes
2) 7-4-5
3) Yes. Hopefully before it becomes a correctable error.

It's a Team Control (and a Player Control) foul. No FTs should be shot.

10-Penalties 1-b