Team Refuses to Play

[Eagle62]

I am just a sports fan that reads this forum to have a better knowledge of the game.

A sit. from a HS game played under NF rules. Team A fumbles and B recovers and returns for TD. A flag, on B, for apparant block in the back is waved off after officials confer. A coach is irrate at the waved off flag and refused to send out a team to defend the PAT. Officials allowed B to convert a 2 pt PAT with no defense.

Is this correct, should there be any penalty?

Thanks, for your response, I will keep reading and learning.