Double Fouls

Question
Last night I had my team coming over an amazing effort to a 4th Quarter Comeback. There was only 2s left in the game clock and we were on the 10yd line ready to kick a FG. The snap was high, the Kicker could still kick it but it was blocked by the other team. The ball was free and it was recovered by the opponent. There were flags on the play. After a very long huddle the Refferee came out with these: "Two Fouls on the play - Offside on the Defense and Illegal Formation on the Offense. The penalties are offset. Result is the FG was blocked and recovered by the Defense". Then he gave the opponent ball possesion, they made a kneel down and the game was over. We lost it. I'm pretty sure that there was a HUGE MISTAKE by this refferee and that there were two live balls penalties and these penalties should have been offset and the DOWN MUST BE REPLAYED. What should have been the correct call?
Thank you very much!

Answer
Elimar
At the outset, I have to agree with you based on , unless there is other information I do not have about the game.  Based on your play there were off setting fouls, the down likely should have been replayed [NCAA Rule 3-2-3; 10-1-4]. Because the clock expired during the last play and assuming both teams accepted the fouls they off set and the down replayed for one untimed down. Now with that said, I would need to know what rules you are playing under as there are some rule exceptions.  I assume you are playing under NCAA rules since the Offside foul was called [live ball defensive foul].

I agree with you based on the information you gave and making some assumptions on my part that the officials made a mistake in the enforcement of 3-2-3; 10-4-1; 10-4-1- exceptions].    

However in trying to figure out why the mistake was made I am wondering if one team accepted the penalty and the other declined it [rather than an off set].  I don't understand why the official would have awarded B the ball for an untimed down, unless you are playing under different rules.  Had this been a Try or a successful field goal with a foul by B only there would have been some options rather than an offset.  Because this is a change of possession play with multiple fouls the team last to gain possession [Team B] may decline A's foul and retain possession [Rule 10-1-4-exception] but time had expired.  The Referee was correct to award B the ball had time not expired.