Is there fungus in your mulch? The answer is there is likely some in any organic mulch. Fungus is a part of it, especially if it is something natural like wood chips, leaf mulch, or compost mulch. There are a couple of ways to get rid of it, and some are not harmful.
There are a couple of fungi that are harmless to humans and animals. This first is bird’s nest fungus, which looks like a tiny bird’s nest with little eggs in it. The other is artillery fungus, which is a little cup with a little black egg in the middle. Slime mold is another that is unsightly, as it often resembles dog vomit. Again, these are harmless and can just be unsightly. There are treatments to get rid of them but they do not work permanently.
There are mushrooms as well, which some can be poisonous or even lethal to humans and pets. If you want to get rid of these, you can rake or mow them, or dispose of them safely.