Question on NFHS Formations

[29Rocket]

I am fairly new to coaching (3rd year) and this is my first year as a head coach (for a 3rd & 4th grade team).

I am a bit confused about illegal formation vs ineligible down field in respect to NHFS rules. As I understand it, there is no ineligible receiver down field penalty in NHFS, correct?

If so, would a formation such as

    XYTGCGT
        1  
    4   3   2

be legal? The TE and WR on the LOS next to each other, with the QB(1), FB(3) and two wing backs(2 & 4) in the backfield.

We only run out of this formation and have never been called on it, but it
would be illegal in the NFL since the TE(Y) is covered by the WR(X) and the RT is uncovered.

Under NHFS, can I also pass to X or Y out of this formation?

Our league does not enforce numbers, any number can play any position. We had a QB at number 77 2 years ago


Thanks