I was working outside, and found this two stops on the gound, like
mounds of fine red dust. I noticed it because I was watering with the
hose and if drops fell on it, it would release dust like smoking.
Very odd. Under the dust there is this yelow substance, looks like a
1/8" think, bright yellow.

I suspect it is some king of a fungus. Any ideas about what it is?
I am located in DFW, North Texas area.