I have a strange fungus appearing in...

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I have a strange fungus appearing in numerous spots around my mulched flower beds. It first appears as a thick, bright yellow, bubbly liquid (almost paintlike). As it dries, it forms a tan crust across the top. If it is sprayed with water, it produces small clouds of dark brown dust. What can I do to eliminate it?
It sounds as if you have slime mold, a fungus that lives on mulch. Although it doesn’t decay the mulch, it is quite unsightly. To control the problem use corn meal as that will kill off the disease, or even diluted milk. These two treatments will not harm soil organisms. This is also an excellent way to control brown patch, a fungus that gets into Saint Augustine grass in the late summer.