Hello Deborah, I do not know what these worms you describe are. If they were very tiny, it could be mosquito larvae. It might have been some other type of larva that was living inside of the mulch. In general, white worm-like organisms are likely to be immature (larval) stages of an insect or other invertebrate. In most cases, they will continue their life cycle and pupate into the adult form. Beetles, flies, and mosquitoes all have larvae that look like white worms as do many moths. Some are naturally aquatic, like mosquitoes and others live in the soil. Again, I cannot say what the ones you saw were, but hopefully this background information will help clarify the situation. You could try to collect a few samples and bring it to your local Extension office to see if they can help you get it identified.