Despite my gardening-like user name, I can not claim any knowledge or expertise in the entire gardening area. Please excuse my lack thereof with my question.

We have some flowers and shrubs in the front of our home on each side of the steps. There is dark brown wood mulch surrounding them. A couple of years ago, I noticed these orange fungal-like projections. We removed the old mulch and replaced it with new.

Now we have a very strong musty smell noticeable when standing at the front of the house. The house faces north and we are in a northern climate. I think it does not get much sun. I am guessing this is all from mold. I do not think there is too much mulch, but what should we do?

Last year we had other landscaping work done on our small budget, and the mulch was placed there by the landscaper. We don't really want to have to remove all and replace, but the smell is bad and I worry not healthy too. Right now, I am avoiding opening the front windows.

Any suggestions?