The orange mass...

So I was checking the web to see if something else would look like this and I discovered this website.

http://msucares.com/news/print/lgnews/lg07/070607.html 

"Balbalian said this fungus is usually found on the ground and looks like orange dog vomit. It is lumpy and flat, and its color can range from pink to red or orange. It starts out moist, but dries to form a hard crust as it matures. Inside are dark black, powdery spores."

That is exactly what it looks like and I guess what I thought was gray fur is actually the spores inside.  I feel better now.