Identification: Mushroom ??

I found this unusual shaped item in the countryside near Dallas, TX. At first I thought it was a wasp nest but I now believe it is a mushroom of some sort. The bottom shows where insects have entered it for feeding. The bottom material is quite spongy whilte the sides are are more paper like. The top has twig like a fruit that had been hanging from a tree. What is it?

 

My guess is that a mushroom picker got there first and that this is the lower part of the stem s/he cut off cleanly with a knife before putting a mushroom in their collecting basket.
'Just a guess - this could be something else :-)
-frog

 

I'm not convinced it is of a fungal nature. Does it smell fungusy?

 

Thanks for the suggestions.

This was not from an area where there was any mushroom collection. It was lying in the grass and looked like it had been blown there on a windy day. It was collected last November and now has no smell at all.