You don't have to put anything on it; it is just a natural process breaking down the mulch. It is dog vomit slime mold.

Here is a link that might be useful: dog vomit

Slime molds (not really a mold or a fungus) really don't have much to do with decomposition but ingest bacteria and organic compounds that are already decomposed. They are very common on mulch, manure, compost, etc. But they can also be observed moving across sidewalks and other surfaces.

Fascinating organisms, and not at all harmful in any way.

Thanks ya'll - i don't really conder them fascinating lol - but nice to know not harmless. It doesn't really APPEAR to be a "slime mold" b/c it is stationary and is powdery by the end of day 1. saw slime mold one time out in the woods behind my house and thought i was gonna puke lol

There are thousands of different species of these 'things'. Your description fits perfectly. They really can be kinda sickening looking, at times.

What about a fungus that looks like a brown accordian or something - has ridges. There are a few in the cedar mulch - different sizes. All are allergic to mold so how should I get rid of it -- or should I just leave it alone. Has been raining all summer here.

Thanks