SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                   ----------

                                   FORM 10-QSB

   Quarterly Report of Small Business Issuers under Section 13 or 15(d) of the
 Securities Exchange Act of 1934 for the quarterly period ended March 31, 2006

                          Commission File No. 333-45210

                       SYSTEMS MANAGEMENT SOLUTIONS, INC.
                 (Name of Small Business Issuer in Its Charter)

                                   ----------

                Nevada                                88-0460457
   (State or other jurisdiction of         (IRS Employer Identification No.)
            incorporation)


   7550 IH-10 West, 14th Floor                           78229
   San Antonio, Texas
   (Address of Principal Executive Offices)           (Zip Code)


         Issuer's telephone number, including area code: (210) 541-9100

                                   ----------

      The issuer has (1) filed all reports required to be filed by Section 13 or
15(d) of the Exchange Act during the past 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) been subject to
such filing requirements for the past 90 days.

 Number of shares outstanding of each of the issuer's classes of common equity:


             Class                           Outstanding as of May 15, 2006
-------------------------------              ------------------------------
Common stock, $0.0001 par value                        20,690,386


   The issuer is not using the Transitional Small Business Disclosure format.



<PAGE>

                                TABLE OF CONTENTS

                                                                           Page
                                                                           ----



PART I.   FINANCIAL INFORMATION...............................................1


ITEM 1.   CONSOLIDATED FINANCIAL STATEMENTS...................................1


ITEM 2.   MANAGEMENT'S PLAN OF OPERATIONS.....................................6


ITEM 3.   CONTROLS AND PROCEDURES.............................................7


PART II - OTHER INFORMATION...................................................7



ITEM 1.   LEGAL PROCEEDINGS...................................................7


ITEM 2.   EXHIBITS AND REPORTS ON FORM 8-K....................................8


SIGNATURES....................................................................9


CERTIFICATIONS


EXHIBIT NO, 31.1 - CERTIFICATION PRESIDENT AND CHIEF EXECUTIVE OFFICER........10

EXHIBIT NO. 31.2 - CERTIFICATION CHIEF FINANCIAL OFFICER......................11

EXHIBIT NO. 32.1 - CERTIFICATION PURSUANT TO SECTION 906 OF SARBANES OXLEY ACT
                   - PRESIDENT

                           AND CHIEF EXECUTIVE OFFICER........................12

EXHIBIT NO. 32.1 - CERTIFICATION PURSUANT TO SECTION 906 OF SARBANES OXLEY ACT
                   - CHIEF

                           FINANCIAL OFFICER..................................13


<PAGE>

                       SYSTEMS MANAGEMENT SOLUTIONS, INC.
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                              March 31,             December 31,
                                                                                2006                    2005
                                                                            (unaudited)
                 ASSETS
<S>                                                                             <C>                   <C>
Current Assets
      Cash                                                                      $ 86,597              $ 98,468
      Accounts receivable                                                        166,519                     -
      Accounts receivable-related parties                                         24,566                93,142
      Inventory                                                                   95,085                81,687
      Capitalized Loan Costs, net of accumulated
        amortization of $10,000                                                   20,000                     -
      Other                                                                        8,661                13,088
                                                                           --------------     -----------------

            Total Current Assets                                                 401,428               286,385

Property and equipment, net of accumulated depreciation of
      $479,170 &  $ 467,702                                                      502,360               422,560
Deposits                                                                         255,000                 4,000
                                                                           --------------     -----------------

            Total Assets                                                      $1,158,788             $ 712,945
                                                                           ==============     =================

                 LIABILIITES AND STOCKHOLDERS' DEFICIT
Current Liabilities
      Accounts payable                                                         $ 451,725             $ 296,745
      Accounts payable - related parties                                          72,000                54,000
      Accrued interest and expense                                               326,242               375,985
      Accrued interest and expense - related parties                             371,885               311,076
      Litigation Settlement Liability                                             67,500                87,500
      Other Loans                                                                496,333                     -
      Shareholder loans                                                        3,706,887             3,494,887
                                                                           --------------     -----------------

            Total Current liabilities                                          5,492,572             4,620,193

Long-Term Liabilities
      Litigation Settlement Liability                                            382,500               382,500
                                                                           --------------     -----------------

            Total Liabilities                                                  5,875,072             5,002,693

Stockholders' Deficit
      Preferred stock, $.0001 par value, 5,000,000 shares authorized, no
        shares issued and outstanding                                                  -                     -
      Common stock, $.0001 par value, 100,000,000 shares
        authorized, 20,690,386 & 20,640,386 shares issued and outstanding          2,069                 2,064
      Additional paid-in capital                                              19,472,486            19,429,420
      Accumulated deficit                                                    (24,190,839)          (23,721,232)
                                                                           --------------     -----------------

            Total Stockholders' Deficit                                       (4,716,284)           (4,289,748)
                                                                           --------------     -----------------

                 Total Liabilities and Stockholders' Deficit                  $1,158,788             $ 712,945
                                                                           ==============     =================
</TABLE>


                                     Page 1
<PAGE>

                       SYSTEMS MANAGEMENT SOLUTIONS, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                   Three Months Ended March 31, 2006 and 2005
                                   (unaudited)



                                                                      Restated
                                                      2006              2005
                                                 ------------      -------------

Revenue                                          $    876,253      $     94,251

Cost of sales                                         781,008            96,078
                                                 ------------      ------------

      Gross margin                                     95,245            (1,827)

General and administrative                            435,887           745,455
Depreciation                                           12,163            16,801
Amortization                                           11,833                --

                                                 ------------      ------------

      Total operating expenses                        459,883           762,256

                                                 ------------      ------------
      Net Operating Loss                             (364,638)         (764,083)


Interest expense                                     (104,969)          (88,331)

                                                 ------------      ------------
             NET LOSS                            $   (469,607)     $   (852,414)
                                                 ============      ============



Basic and diluted loss per share                 $      (0.02)     $      (0.11)

Weighted average shares outstanding                20,673,164         7,550,253


                                     Page 2
<PAGE>

                       SYSTEMS MANAGEMENT SOLUTIONS, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                        Three Months Ended March 31, 2006
                                   (unaudited)

<TABLE>
<CAPTION>
                                                                             Restated
                                                                  2006         2005
                                                              ---------    ----------
<S>                                                           <C>          <C>
Cash Flows From Operating Activities
      Net loss                                                $(469,607)   $(852,414)

      Adjustments to reconcile net loss to net cash used in
          operating activities:
                Imputed Interest                                 37,570       41,054
                Depreciation                                     12,163       16,801
                Amortization                                     11,833           --
                Loss on disposal of equipment                     7,595           --
          Changes in:
                Accounts receivable                             (73,377)     (61,216)
                Accounts receivable - related parties           (24,566)     (17,904)
                Inventory                                       (13,399)      12,575
                Current assets                                 (276,573)      10,713
                Accounts payable                                154,980       85,998
                Accounts payable - related parties               18,000       13,000
                Accounts payable - settlement                   (20,000)          --
                Accrued expenses                                (49,742)      24,905
                Accrued expenses - related parties               60,809           --

                                                              ---------    ---------
      Net Cash Used in Operating Activities                    (624,314)    (726,488)
                                                              ---------    ---------


Cash Flows From Investing Activities
      Purchase of fixed assets                                  (99,558)     (91,350)

                                                              ---------    ---------
      Net Cash Used in Investing Activities                     (99,558)     (91,350)
                                                              ---------    ---------
</TABLE>


                                     Page 3
<PAGE>

SYSTEMS MANAGEMENT SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(continued)

<TABLE>
<CAPTION>

<S>                                                           <C>           <C>
Cash Flows From Financing Activities
      Proceeds from shareholder loans                         212,000       812,036
      Proceeds from other loans                               500,000            --
      Contributions from related parties                           --        10,000

                                                           ----------    ----------
      Net Cash Provided by Financing Activities               712,000       822,036
                                                           ----------    ----------

Net change in cash                                            (11,871)        4,198
Cash at beginning of period                                    98,468         5,147
                                                           ----------    ----------

Cash at end of period                                      $   86,597    $    9,345
                                                           ==========    ==========




Supplemental disclosures:
Income Tax Paid                                            $       --    $       --
Interest Paid                                                     603            --

Non-cash operating and financing activities:
Common Stock issued for conversion of note payable and
      accrued interest to equity                           $       --    $2,310,304
Preferred Stock dividend                                           --       510,300
Offset of Related Party Receivable with note payable due
      to shareholder                                               --        75,232
Conversion of preferred stock to common stock                      --         1,310
Common Stock issued as loan discount for Note Payable           5,500            --
</TABLE>


                                     Page 4
<PAGE>

                       SYSTEMS MANAGEMENT SOLUTIONS, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)


NOTE 1 - BASIS OF PRESENTATION

The accompanying unaudited interim financial statements of Systems Management
Solutions, Inc. have been prepared in accordance with accounting principles
generally accepted in the United States of America and the rules of the
Securities and Exchange Commission ("SEC"), and should be read in conjunction
with the audited financial statements and notes thereto contained in the
Company's financial statements filed with the SEC on Form 10-KSB. In the opinion
of management, all adjustments, consisting of normal recurring adjustments,
necessary for a fair presentation of financial position and the results of
operations for the interim periods presented have been reflected herein. The
results of operations for interim periods are not necessarily indicative of the
results to be expected for the full year. Notes to the financial statements
which would substantially duplicate the disclosure contained in the audited
financial statements for the most recent fiscal year 2005 as reported in Form
10-KSB, have been omitted.


NOTE 2 - EQUITY

On February 1, 2006, SMS issued 50,000 shares of common stock to a lender as
additional incentive to make such loan (see Note 5)


NOTE 3 - ACQUISITION OF SMS ENVIROFUELS, INC.

On April 6, 2005, SMS acquired all of the outstanding stock of SMS Envirofuels,
Inc., a Texas corporation, in exchange for 1,444,444 shares of its common stock.
The acquisition was accounted for under the pooling method due to the fact that
a majority shareholder of SMS Envirofuels is also a majority shareholder of SMS.
All of the assets, liabilities, profit and loss of SMS Envirofuels are combined
with SMS as if the companies have been consolidated from their inception.


NOTE 4 - RESTATEMENT OF PRIOR YEAR DUE TO ACQUISITION

As a result of the acquisition discussed in Note 3, the numbers provided for the
three months ending March 31, 2005 are restatements of prior filings. The
acquisition was accounted for by the Pooling of Interest business combination
method. Below is a schedule of those changes.


                                                        Three Months Ended
                                                          March 31, 2005

                                                    Previously
                                                     Reported       Restated

Net Income                                            (670,277)     (852,414)

Earnings Per Share                                       (0.09)        (0.11)

Weighted average shares outstanding*                 7,550,253     7,550,253



                                     Page 5
<PAGE>

NOTE 5 - NEW PROMISSORY NOTE

On February 3, 2006, The Company signed a secured promissory note in the amount
of $500,000 to an independent lender. The security pledged for this note is
equipment recently purchased plus the deposit placed on equipment currently
being prepared for delivery in the future. The interest is 10% and the note
expires on August 1, 2006. As incentive to make this loan, the lender was issued
50,000 shares of the Company's common stock.


ITEM 2. MANAGEMENT'S PLAN OF OPERATIONS

      The following discussion and analysis should be read in connection with
the Company's consolidated financial statements and related notes thereto,
included elsewhere in this report.

      The Company is comprised of two wholly owned subsidiaries, Aspect Business
Solutions, Inc. ("ASPECT) and SMS Envirofuels, Inc. ("SMSE").

      As previously reported, ASPECT has expanded its product and service
offerings, which previously were focused on its biometric time and attendance
product. ASPECT now provides custom programming, support and Microsoft systems
products to its customers. During 2004, ASPECT became a Microsoft Certified
Partner which enabled it to remarket a specific line of software developed by
Microsoft Corporation. During the 1st quarter, the majority of ASPECT's revenue
was generated from two sources, the final stages of an implementation that was
begun in the summer of 2005 and client maintenance for the restructuring of the
customer's database. The remainder of the quarter was focused on new client
marketing and sales efforts. These efforts have produced one new customer
contract and several more contracts that are currently being negotiated.

      SMS Envirofuels began processing biodiesel continuously, although not
consistently, in April 2005. Since then, the manufacturing facility has
experienced a steady demand for its product and has continued to perfect its
process to achieve both consistency and efficiency. During this quarter,
management had increased its sales prices and expansion for the production of
biodiesel had begun. With the expansion targeted to be complete in June 2006,
SMSE can expect to increase its production from 2,000,000 gallons of biodiesel
per year to 5,000,000. In March, the company received a biodiesel production
subsidy from the USDA for its production of biodiesel using soy oil purchased
from American farmers during the fourth quarter of 2005 (U.S. Department of
Agriculture, Commodity Credit Corporation, Bioenergy Program). The subsidy for
the fourth quarter production was based on 215,058 gallons of biodiesel produced
by SMSE. This program has an expiration date of September 30, 2006. However,
SMSE has received notification that due to the exhaustion of funds, the USDA
will be terminating its agreements as of June 30, 2006. It has been the goal of
SMSE to operate without reliance on this subsidy. The expansion will allow SMSE
to take advantage of lower bulk pricing for its raw material and the increase in
margin generated from the increase in production out paces the costs associated
with the increase. The Company anticipates increasing demand and production
operations to remain at or near capacity in the 2nd quarter of 2006.


      SMS incurred a net loss of $469,607 for the three months ended March 31,
2006, and had a working capital deficit of $5,091,144 as of March 31, 2006.
These conditions create an uncertainty as to The Company's ability to continue
as a going concern. The Company has seen improvement in the operating results of
ASPECT and SMS Envirofuels during the past months. However, the Company
continues to rely on loans and advances principally from its major stockholder,
United Managers Group, Inc., to fund operating shortfalls and does not foresee a
change in



                                     Page 6
<PAGE>

this situation in the immediate future. There can be no assurance that the
Company will continue to have such loans and advances available. The Company
will not be able to continue operations without them. The Company does not plan
on significant changes in the number of employees in the near future. Neither
does the Company plan on a purchase or sale of plant or significant equipment.
However, it remains a central focus of the Company to pursue acquisition targets
and to expand its current biodiesel plant production capacity, which will
enhance the ability of the Company to satisfy its cash requirements.


ITEM 3. CONTROLS AND PROCEDURES

(a) Under the supervision and with the participation of our management,
including our principal executive officer and principal financial officer, we
conducted an evaluation of the design and operation of our disclosure controls
and procedures, as such term is defined under Rules 13a-14(c) and 15d-14(c)
promulgated under the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), within 90 days of the filing date of this report. Based on that
evaluation, our principal executive officer and our principal financial officer
concluded that the design and operation of our disclosure controls and
procedures were effective as of the end of the period covered by this report in
timely alerting them to material information required to be included in the
Company's periodic reports and filed with the SEC under the Securities Exchange
Act of 1934, as amended. The design of any system of controls is based in part
upon certain assumptions about the likelihood of future events, and there can be
no assurance that any design will succeed in achieving its stated goals under
all potential future conditions, regardless of how remote.


(b) In addition, there were no significant changes in our internal control over
financial reporting identified in connection with the evaluation that occurred
during the last fiscal quarter that have materially affected or that are
reasonably likely to materially affect our internal control over financial
reporting.




                           PART II - OTHER INFORMATION


ITEM 1. LEGAL PROCEEDINGS

      In early 2005, the landlord for the offices occupied by YCO Holdings, Inc.
and its subsidiaries filed suit in the 295th District Court of Harris County,
Texas Cause No. 2005-04423 captioned WKB Value Partners, LP vs. Systems
Management Solutions, Inc., alleging that the Company was obligated on the lease
even though no authorized officer of the Company had signed the same. This
lawsuit was dismissed in February, 2006 pursuant to a Comprehensive Settlement
Agreement which required the Company to make payments to WKB Value Partners, LP
in the amount of $470,000. The payment schedule called for $20,000 initial
payment, followed by monthly payments of $7,500 for 60 months









                                     Page 7
<PAGE>

ITEM 2. EXHIBITS AND REPORTS ON FORM 8-K

            (a) Exhibits

                  31.1 Rule 13a-14(a)/15d-14(a) Certification of Principal
                           Executive Officer
                  31.2 Rule 13a-14(a)/15d-14(a) Certification of Principal
                           Financial Officer
                  32.1 Section 1350 Certification of Principal Executive Officer
                  32.2 Section 1350 Certification of Principal Financial Officer

            (b) Reports on Form 8-K:

                  1.    On August 20, 2004, the Company filed a Current Report
                        on Form 8-K announcing the change of the Company's name
                        to Systems Management Solutions, Inc.


                  2.    On February 8, 2005, the Board of Directors of the
                        Company voted to change its fiscal year end from June 30
                        to December 31. The Company last changed its fiscal year
                        to correspond to the fiscal year of a subsidiary that
                        has since discontinued operations.

                  3.    On March 22, 2005, the Board of Directors of the Company
                        voted to reduce the number of shares outstanding of the
                        Company's $0.0001 par value common stock by reverse
                        split to exchange one (1) new share for each two and one
                        half (2 1/2) old shares. Any fractional shares created
                        by this reverse split were truncated to the nearest
                        whole share and no cash was paid for any such fractional
                        share.

                  4.    On April 6, 2005, the Registrant established a wholly
                        owned subsidiary named SMSN Merger Sub, Inc., a Texas
                        corporation which such corporation then entered into an
                        Agreement and Plan of Merger between itself, SMS
                        Envirofuels, Inc., a Texas corporation, and the
                        Registrant. Under the terms of such Plan of Merger, SMS
                        Envirofuels, Inc. was merged into SMSN Merger Sub, Inc.,
                        the name of SMSN Merger Sub, Inc. was changed to SMS
                        Envirofuels, Inc., and the shares of SMS Envirofuels,
                        Inc. were exchanged for 1,444,444 shares of the $0.0001
                        common stock of registrant. SMS Envirofuels, Inc. has
                        developed a plant to produce bio-diesel from soybean oil
                        and markets such bio-diesel to distributors and
                        retailers. The Registrant plans to continue this
                        business with the operating assets of SMS Envirofuels,
                        Inc. and to expand the production and marketing of the
                        bio-diesel product.

                  5.    On August 19, the Company filed the results of the audit
                        of the Years Ended December 31, 2003 and 2004 and the
                        review of the Quarter Ended March 31, 2005 for SMS
                        Envirofuels, Inc.

                  6.    On February 20, 2006, the Company filed Item 4.02
                        Non-Reliance on Previously Issued Financial Statements
                        or a Related Audit Report or Completed Interim Review on
                        Form 8-K, as a result of the restatement of the
                        financial statements for the Year Ending December 31,
                        2002










                                     Page 8
<PAGE>

SIGNATURES

      In accordance with Section 13 or 15(d) of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

Dated: May 11, 2006

                       SYSTEMS MANAGEMENT SOLUTIONS, INC.,
                              a Nevada corporation


                              By: /s/ James Karlak
                 -----------------------------------------------
               James Karlak, President and Chief Executive Officer


                             By: /s/ Morris Kunofsky
                 -----------------------------------------------
                    Morris Kunofsky, Chief Financial Officer
















                                     Page 9