Found on Limekiln Trail at Lexington Reservoir County Park
Just a guess
a orange looking fungus with black spots maybe the spores?
On pawpaw saplings. Fuzzy, velvety, grey, porous spore bearing surface. Spongy and would exude liquid when squished.
Conical cap, slight bleachy smell to the stipe, powdered granule appearance on the stipe, surrounded by old privet and mixed hardwood.
On a dead privet trunk.