U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  FORM 10-QSB
              [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                  For the quarterly period ended June 30, 2003

                                       OR

              [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
              For the transition period from ________ to ________


                    Consortium Service Management Group, Inc.
             (Exact name of registrant as specified in its charter)

     Texas                             0-27359                      74-2653437
-------------                  ------------------------           -------------
  (state of                    (Commission File Number)           (IRS Employer
incorporation)                                                     I.D. Number)


                   500 North Shoreline Drive, Suite 701 North
                            Corpus Christi, TX 78471
                                  512-887-7546
            -------------------------------------------------------
            (Address and telephone number of registrant's principal
               executive offices and principal place of business)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding twelve months (or for such shorter period that the registrant was
required  to  file  such  reports),  and  (2)  has  been  subject to such filing
requirements  for  the  past  90  days.  Yes  [X]     No  [ ]

As  of  August  13, 2003, there were 7,470,650 shares of the Registrant's Common
Stock,  par  value  $0.001,  outstanding.

Transitional  Small Business Disclosure Format (check one):  Yes [ ]  No [X]









<PAGE>


                         PART I - FINANCIAL INFORMATION



Item  1.          Financial  Statements





























<PAGE>

To  the  Board  of  Directors  and  Stockholders  of
Consortium  Service  Management  Group,  Inc.  and  Subsidiaries

I have reviewed the accompanying balance sheets of Consortium Service Management
Group,  Inc. and Subsidiaries as of June 30, 2003 and December 31, 2002, and the
related  Statements  of  Operations,  Accumulated  Deficits, and Cash Flows, and
Stockholder's  Equity  for  the  quarter and year then ended, in accordance with
Statements  on  Standards  for  Accounting  and  Review  Services  issued by the
American Institute of Certified Public Accountants.  All information included in
these financial statements is the representation of the management of Consortium
Service  Management  Group,  Inc.  and  Subsidiaries.

A  review  consists principally of inquiries of company personnel and analytical
procedures applied to financial data.  It is substantially less in scope than an
audit in accordance with generally accepted auditing standards, the objective of
which  is  the expression of an opinion regarding the financial statements taken
as  a  whole.  Accordingly,  I  do  not  express  such  an  opinion.

Based  upon  my review, I am not aware of any material modifications that should
be  made  to  the  accompanying  financial statements in order for them to be in
conformity  with  generally  accepted  accounting  principles.

The  accompanying  financial  statements  have  been  prepared assuming that the
Company  will  continue  as  a  going  concern.  As  discussed  in Note 2 to the
financial  statements, the Company has suffered recurring losses from operations
that  raised substantial doubt about its ability to continue as a going concern.
Management's  plans in regard to these matters are also described in Note 2. The
financial  statements  do not include any adjustments that might result from the
outcome  of  this  uncertainty.


/s/  Gary  Skibicki

Gary  Skibicki,  C.P.A.,  P.C.
Oklahoma  City,  OK
August  13,  2003



                                        3
<PAGE>

            CONSORTIUM SERVICE MANAGEMENT GROUP, INC. AND SUSIDIARIES
                           CONSOLIDATED BALANCE SHEET

                                     ASSETS
<TABLE>
<CAPTION>
                                                   Jun. 30, 2003   Dec. 31, 2002
                                                   -------------   -------------
Current  Assets
---------------
<S>                                                <C>             <C>
Cash                                               $     33,792    $      3,905

Fixed  Assets
-------------
Furniture  and  Equipment                                61,409          61,409
  Less:  Accumulated  Depreciation                      (55,026)        (51,171)
                                                   ------------    ------------
      Total  Fixed  Assets                                6,383          10,238

Other  Assets
-------------
Investment  -  United  Engineering  Co.                 282,273         314,428
Investment  -  CO2  Equipment                         1,440,224       1,159,788
Tissue  Bonding  Patent                                 237,486         197,959
  Less:  Accumulated  Amortization                      (15,514)        (10,514)
Tissue Bonding Equipment                                 38,480               0
Employee Advances                                        40,468               0
                                                   ------------    ------------
      Total  Other  Assets                            2,023,417       1,661,661
                                                   ------------    ------------

      Total  Assets                                $  2,063,592    $  1,675,804
                                                   ============    ============
</TABLE>






      The accompanying notes are an integral part of these interim financial
                                   statements.

                                        4

<PAGE>
           CONSORTIUM SERVICE MANAGEMENT GROUP, INC. AND SUBSIDIARIES
                     CONSOLIDATED BALANCE SHEET (Continued)

                                  LIABILITIES

<TABLE>
<CAPTION>
                                                   Jun. 30, 2003   Dec. 31, 2002
                                                   -------------   -------------
Current  Liabilities
--------------------
<S>                                                <C>             <C>
Accounts  Payable                                  $    379,041    $    326,767
Interest  Payable                                       283,435         163,939
Payroll  Taxes  Payable                                  20,589          17,708
Notes  Payable  to  Shareholders                      2,804,619       2,492,039
CO2  Equipment  Payable                                 206,749          92,474
Salaries Payable                                        209,501               0
                                                   ------------    ------------
      Total  Current  Liabilities                     3,903,934       3,092,927

Minority  Interest  in  Consolidated  Subsidiary        206,000         206,000

Stockholder's  Equity
---------------------
Common  Stock,  $.001  par  value,  40,000,000            7,377           6,934
  shares  authorized;  7,376,590  shares  issued
  and  outstanding  at  June  30,  2003  and
  6,934,125  shares  issued  and  outstanding
  at  December  31,  2002
Additional  Paid  in  Capital                         4,561,834       4,285,509
Accumulated  Other  Comprehensive  (Loss)              (343,534)       (341,775)
Accumulated  (Deficit)                               (6,272,019)     (5,573,791)
                                                   ------------    ------------
      Total  Stockholder's  Equity                   (2,046,342)     (1,623,123)
                                                   ------------    ------------

      Total  Liabilities  and
        Stockholder's  Equity                      $  2,063,592    $  1,675,804
                                                   ============    ============
</TABLE>





      The accompanying notes are an integral part of these interim financial
                                   statements.

                                        5

<PAGE>

           CONSORTIUM SERVICE MANAGEMENT GROUP, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
                                        Apr. 1, 2003 -  Apr.1, 2002 -  Jan. 1, 2003 -  Jan.1, 2002 -
                                        Jun. 30, 2003   Jun. 30, 2002  Jun. 30, 2003   Jun. 30,  2002
                                        -------------   -------------  -------------   --------------
<S>                                     <C>             <C>            <C>             <C>
Revenue                                            -               -              -               -

General  and  Administrative Expenses   $    513,831    $     51,441   $    658,925    $    157,254
  Funded  R  &  D
  Cost  of  Funded  R & D                          -               -          8,910               -
  Net  R  &  D  Cost                               -               -          8,910               -
                                        ------------    ------------   ------------    ------------
    Operating  (Loss)                       (513,831)        (51,441)      (667,835)       (157,254)

Interest  Income                                   1               -              4               6

Interest  in  Income  (Loss)  of
  Unconsolidated  Companies                    6,433         (36,933)       (30,397)       (105,926)
                                        ------------    ------------   ------------    ------------
    Net (Loss)                          $   (507,397)   $    (88,374)  $   (698,228)   $   (263,174)
                                        ============    ============   ============    ============

Basic  and  Diluted  (Loss)  per  share        (0.07)          (0.01)         (0.10)          (0.04)

Weighted Average Common
  Shares  Outstanding                      7,171,545       6,199,000      7,155,358       6,199,000
</TABLE>








      The accompanying notes are an integral part of these interim financial
                                   statements.

                                        6

<PAGE>

           CONSORTIUM SERVICE MANAGEMENT GROUP, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENT OF CASH FLOWS

<TABLE>
<CAPTION>
                                        Apr. 1, 2003 -  Apr.1, 2002 -  Jan. 1, 2003 -  Jan.1, 2002 -
                                        Jun. 30, 2003   Jun. 30, 2002  Jun. 30, 2003   Jun. 30,  2002
                                        -------------   -------------  -------------   --------------
Cash Flows from Operating Activities
------------------------------------
<S>                                     <C>             <C>            <C>             <C>
Net  (Loss)                             $   (507,397)   $    (91,674)  $   (698,228)   $    (252,542)
Dividends  from  Investors                         -               -              -           11,200
Depreciation  and  Amortization                4,427           1,927          8,855            3,976
Increase  (Decrease)  Accounts Payable        (3,649)              -         52,274                -
Increase  (Decrease)  Accrued Interest       119,495          30,870        119,495           92,610
Increase  (Decrease)  Taxes  Payable           2,881               -          2,881                -
Increase  (Decrease)  Salary Payable          87,501               -        209,501                -
Equity (Income)  Loss from Investees          (6,433)         36,933         30,397          105,926
Foreign  Exchange  Loss  (Gain)                    -           3,300              -          (10,632)
Issue Stock for Interest and Services        200,934                        200,934
                                        ------------    ------------   ------------    ------------
    Cash Flows from Operating
      Activities                            (102,241)        (18,644)       (73,891)         (49,462)

Cash Flows from Investing Activities
------------------------------------
Purchase  Equipment                          (77,229)          4,000       (244,168)          1,615
Employee  Advance                            (26,668)           (745)       (40,468)         (8,995)
                                        ------------    ------------   ------------    ------------
    Cash  Flows  from
      Investing  Activities                 (103,897)          3,255       (284,636)         (7,380)

Cash Flows from Financing Activities
------------------------------------
Increase  (Decrease)  Notes  Payable         237,714          15,325        368,414          43,404
Sell  Stock                                                        -         20,000               -
                                        ------------    ------------   ------------    ------------
    Cash  Flows  from
      Financing  Activities                  237,714          15,325        388,414          43,404

Net  Increase  (Decrease)  Cash               31,576             (64)        29,887         (13,438)
Cash  Beginning  of  Period                    2,216           1,023          3,905          14,397
                                        ------------    ------------   ------------    ------------
Cash End of Period                      $     33,792    $        959   $     33,792    $        959
                                        ============    ============   ============    ============
</TABLE>



                    Financing Activities Not Affecting Cash
Notes  payable of $25000 previously reported as common stock and paid in capital
corrected  during  quarter of  April  1,  2003  -  June  30,  2003




      The accompanying notes are an integral part of these interim financial
                                   statements.

                                        7

<PAGE>

           CONSORTIUM SERVICE MANAGEMENT GROUP, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                        THREE MONTHS ENDED JUNE 30, 2003

<TABLE>
<CAPTION>
                                                                   Accumulated
                                                                      Other
                               Number of      Par     Add'l Paid   Comprehensive   Accumulated
                             Common Shares   Value    in Capital     (Deficit)      (Deficit)         Total
                             -------------  -------   -----------  -------------  -------------   -------------
<S>                            <C>          <C>       <C>           <C>           <C>             <C>
Balance January 1, 2003        6,934,125    $ 6,934   $ 4,285,509   $ (341,775)   $ (5,573,791)   $ (1,623,123)
Common  Stock  Issued
  for  Services                  130,000        130       100,334                                      100,464
Exchange  in  Notes
  for  Common  Stock              44,000         44        55,791                                       55,835
Exchange  of  Interest
  for  Common  Stock             236,090        236       100,234                                      100,470
Common  Stock  Sold               32,000         32        19,968            -               -          20,000
Net (Loss)                             -          -             -            -        (698,226)       (698,226)
Other Comprehensive
  Income (Loss)                                                         (1,759)                         (1,759)
                               ---------    -------   -----------   ----------    -------------   ------------

Balance  June  30,  2003       7,376,215    $ 7,376   $ 4,561,836   $ (343,534)   $ (6,272,017)   $ (2,046,339)
                               =========    =======   ===========   ==========    ============    ============
</TABLE>









      The accompanying notes are an integral part of these interim financial
                                   statements.

                                        8

<PAGE>
           CONSORTIUM SERVICE MANAGEMENT GROUP, INC. AND SUBSIDIARIES
                          NOTES TO FINANCIAL STATEMENTS

                                     NOTE 1
                              BASIS OF PRESENTATION

The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial information.
Accordingly,  they  do not include all of the information and footnotes required
by  generally  accepted accounting principles for complete financial statements.
In  the  opinion  of management, all adjustments considered necessary for a fair
presentation  have  been  included.  Operating  results for the six month period
ending  June  30, 2003 are not necessarily indicative of the results that may be
expected  for  the year ended December 31, 2003.  For further information, refer
to  the  annual  financial  statements  and footnotes thereto for the year ended
December  31,  2002.


                                     NOTE 2
                                  GOING CONCERN

The Company's financial statements have been presented on the basis that it is a
going concern, which contemplates the realization of assets and the satisfaction
of  liabilities  in  the  normal course of business.  The Company incurred a net
loss  of $(698226) for the six months ended June 30, 2003 and when combined with
prior  year  net  losses raises substantial doubt as to the Company's ability to
obtain  debt  and/or  equity  financing  and  achieve  profitable  operations.

The  Company's  management  intends  to raise additional operating funds through
equity  and/or  debt offerings and the sale of technologies.  However, there can
be  no  assurance  management will be successful in its endeavors.  The possible
consequences  of not obtaining additional funds either through equity offerings,
debt  offerings,  or  sale  of technologies is that there will not be sufficient
money  to  fund the capital projects required to earn long term planned revenues
of  the  company.


                                     NOTE 3
                    INCOME (LOSS) FROM UNCONSOLIDATED COMPANY

The  Company's  33%  owned  subsidiary,  United  Engineering  Company, a Ukraine
company,  reported  the  following  sales,  gross  profits  and  net  losses:

<TABLE>
<CAPTION>
                    Apr. 1, 2003-  Apr. 1, 2002-   Jan. 1, 2003-   Jan. 1, 2002-
                    Jun. 30, 2003  Jun. 30, 2002   Jun. 30, 2003   Jun. 30, 2002
                    -------------  -------------   -------------   -------------
<S>                     <C>           <C>             <C>             <C>
Sales                   254363         475822          483336           889962
Gross Profit             47338         207125          73634            100184
Net Income (Loss)        19300        (110799)        (91191)         (317778)
</TABLE>


                                        9
<PAGE>
Item  2.     Management's  Discussion  and  Analysis   of   Financial  Condition
             and  Results  of     Operations

     The  following  discussion  and analysis should be read in conjunction with
the  financial statements and the accompanying notes thereto and is qualified in
its  entirety  by  the  foregoing  and  by  more  detailed financial information
appearing  elsewhere.  See  "Item  1.  Financial  Statements."

     Results  of  Operations - Second Quarter of 2003 Compared to Second Quarter
     ---------------------------------------------------------------------------
of  2002
--------

     We  had  no  revenues  either  for  Q2  2003  or  Q2  2002.

     Operating  expenses  increased  by  $462,390  to  $513,831  during  Q2 2003
compared to $51,441 in Q2 2002.  The principal items of operating expenses were:

     -  $63,337  -  consulting  fees,
     -  $206,849  -  interest  expense,
     -  $87,501  -  non-deductible  expenses,
     -  $11,667  -  travel  expenses  for  the  CO2  project,  and
     -  $12,069  -  sub-contract  consulting  fees.

     We  had  a  loss  from operations of $513,831 for Q2 2003 compared to a net
loss of $51,441 for Q2 2002.  We had a gain in Q2 2003 of $6,433 attributable to
the  operations  of  our Ukraine joint venture in United Engineering Company, as
compared  to  an  accrued  loss  in  Q2  2002 of $36,933 from the joint venture.

     Our net loss for Q2 2003 was $507,397, or $0.07 a share, as compared with a
net  loss  in  Q2 2002 of $88,374, or $0.01 a share, an increase attributable to
increased  expenses.

     Results  of  Operations - First Half of 2003 Compared to First Half of 2002
     ---------------------------------------------------------------------------

     We  had  no  revenues  either  in  2002  or  2003.

     Operating  expenses  of $658,925 in the first half of 2003 were 419 percent
of  those  of  the  first  half  of  2002 - $157,254.  The increase is primarily
attributable  to:

     -  $54,000  -  accrued  salaries,
     -  $101,364  -  consulting  fees,
     -  $228,323  -  interest  expense,
     -  $105,501  -  non-deductible  expenses,
     -  $20,990  -  travel  expenses  from  tissue  bonding  project,  and
     -  $12,914  -  travel  expenses  for  the  CO2  project.

     We  had an operating loss of $667,835 in the first half of 2003 as compared
with  an  operating  loss  in the first half of 2002 of $157,254 - a 424 percent
increase  attributable  to  increased  expenses.

                                       10
<PAGE>

     We  recorded  accrued  losses of $30,397 in the first half of 2003 from our
Ukraine  joint  venture operations in United Engineering Company, compared to an
accrued  loss  of  $105,926  in  the  first  half  of  2002.

     Taking  into  account our joint venture operations in Ukraine, we had a net
loss of $698,228, or $0.10 a share in the first half of 2003 compared with a net
loss of $263,174, or $0.04 a share, in the first half of 2002.  Nevertheless, we
feel  that  we  are  on the right course for the company, that our CO2 separator
project, our anaerobic animal waste project and our human tissue bonding project
all  hold  considerable  promise  for  our  company  in  2003.

     Overview
     --------

     Live  Biological  Tissue  Bonding/Welding
     -----------------------------------------

     Considerable  progress  has  been  made  during  the  past  several months.
Surgeons  in  Ukraine  had  performed  over  1,000  successful  human  surgical
procedures  by  the  end of 2002 and are currently performing between 80 and 100
new  surgeries  per  month.  The  technique and equipment have full approval for
hospital  use  in  that country. The Ukraine team is now using the technology in
five  Ukraine  hospitals  and  clinics developing new tissue welding techniques,
tools  and  procedures  for  human  surgeries.

We  reached  a major milestone in the project when the U.S. patent was issued in
May 2003. After receiving the issued patent we retained an executive search firm
and  have  started  interviewing  qualified  medical industry candidates for the
Chief  Executive  Officer  -  "CEO"  -  position  of our subsidiary, Live Tissue
Connect,  Inc.  The new CEO will help lead the subsidiary company and technology
to  its  next  level.   We  have  continued  interest from a major international
medical  device  company.

     The  Ukraine  hospitals  are using the live tissue bonding technology daily
for open and laparoscopic surgical procedures and techniques.  The procedures so
far  have  involved  the  bonding and reconnecting of incised or separated human
tissues  in  the  following body areas - nasal septum, intestine, stomach, skin,
gall  bladder,  liver,  spleen,  blood  vessels,  nerves,  alba  linea,  uterus,
fallopian tube, ovary and testicles - while restoring the normal function of the
body  organ  or  tissue.

     The  tissue  bonding  device  bonds  and  reconnects living soft biological
tissue  without the use of foreign matters or conventional wound closing devices
such  as  sutures,  staples, sealant, or glues.  The smokeless technology leaves
little  or  no  scar  tissue  visible  to the naked eye after a few months, said
Robbins.  Unlike other tissue coagulation methods that tend to destroy tissue by
charring,  searing  and  necrosis,  our patented technology bonds and reconnects
incised  tissue  and  avoids  charring,  searing  and necrosis, using a low heat
delivery  method aimed at restoration of the normal functions of the live organs
and  tissue.

     United  States  and  Australia  patents have been issued with other foreign
patents  pending.  We  maintain a team of more than 30 academicians, professors,


                                       11
<PAGE>

researchers,  surgeons,  engineers,  technicians and clinical test facilities in
Ukraine  and  have offices in Corpus Christi, Texas; Oklahoma City, Oklahoma and
Kiev,  Ukraine.

     We  own  the  technology  and  exclusive world rights to the medical device
through  Live  Tissue  Connect  Inc,  a  subsidiary  corporation  formed for the
development  and  exploitation  of  the  medical  device  platform  technology.

     Our clinical surgeons recently performed 17 human neurosurgeries in Ukraine
that  made use of our live tissue bonding technology. The surgeries involved the
reconnection  of  Dura  Matter, procedures for removal of a meningioma tumor and
the removal of right-side lobe brain tumor.  This is a major breakthrough in the
continued  development  and  expansion  of  procedures  of  the  company's  live
biological  tissue  bonding  platform  technology.

     CO2  Separation  for  Landfill  Methane  Gas
     --------------------------------------------

     We  completed  installation  of  the plant during the second week of March.
Start-up and equipment adjustment was delayed while waiting for the landfill gas
owner to complete installation of the end-user pipeline and gas metering system.
This  was  installed  near the end of March just as our Ukraine supervisory team
had  to return to Ukraine.  In addition, the landfill gas quality was well below
expected  levels  and required repairs to the gas gathering system to reduce air
intake.  The  landfill  gas owner coordinated and completed these repairs during
the  next  few  weeks, finishing toward the end of May.  The Ukraine supervisory
team  returned  in  early  June  to  oversee  service,  start-up  and adjust the
equipment.   Poor weather caused some delays but this was completed in about two
weeks.  As  we  prepared  to begin start-up operations and equipment adjustment,
Waste  Management  Inc.  ("WMC",  the operator of the landfill) ordered Resource
Technology  Corporation "RTC" (the holder of the gas ownership contract) off the
landfill  over  a  contract dispute that is not related to our company.  We have
since  received  permission from both parties to go on the site and maintain our
equipment.  We  hope negotiations between RTC and WMC will allow us to begin gas
production soon.  We believe the production of gas is advantages for all parties
involved and will generate revenues while the two other companies work out their
dispute.

     The  spot  price  for  natural gas remains around $4.60 per MMBtu today. We
have  several major companies that have indicated serious interest in installing
CO2  separation  units.

     Anaerobic  Farm  Waste,  Inc.
     -----------------------------

     We  have  so  far  been  unable to obtain grower contracts or funding for a
demonstration  plant  for  this  technology.  We  met  several times in the past
months  with the Southeastern Oklahoma Chicken Growers Association, and together
we  drafted  a  plan  to  form  a  farmers co-op as a joint venture.  We jointly
applied  to  the  Oklahoma  Department  of  Agriculture for a loan or a grant to
finance  an  engineering  and  marketing  feasibility  study.

     We  had  a  joint meeting with the Department of Agriculture on January 21,
2003.  The Department was receptive to our request, but declined our request for
then and asked us to resubmit the application in April because Oklahoma had just


                                       12
<PAGE>

inaugurated  a  new  Governor.  The amount requested is $80,000.  We resubmitted
our  application  in  April,  but  it  was  declined  due  to  the lack of funds
appropriated  by  the  Legislature.

     The  disposal  of farm animal waste is an enormous environmental problem in
this  country.  We are convinced our proprietary anaerobic treatment process can
and  will  be  a  part  of  the  solution.

     The  company's  future  results of operations and the other forward-looking
statements contained in this report involve a number of risks and uncertainties.
Among  the  factors that could cause actual results to differ materially are the
following: inability of the company to obtain needed additional capital, loss of
personnel  - particularly Chief Executive Officer Donald S. Robbins or Executive
Vice  President  and  Chief Financial Officer Gordon W. Allison - as a result of
accident  or  for  health reasons, interruptions in the supply of equipment from
manufacturers  of  the  equipment,  the  development  of  competing  products by
well-capitalized  competitors,  and an accident involving life or serious bodily
harm  that  fairly or unfairly would bring into question the safety of using the
company's  products.


Item  3.     Controls  and  Procedures

     Evaluation of disclosure controls and procedures.  We maintain controls and
procedures  designed to ensure that information required to be disclosed in this
report  is  recorded, processed, accumulated and communicated to our management,
including  our chief executive officer and our chief financial officer, to allow
timely decisions regarding the required disclosure.  Within the 90 days prior to
the  filing  date  of this report, our management, with the participation of our
chief  executive  officer and chief financial officer, carried out an evaluation
of  the  effectiveness  of the design and operation of these disclosure controls
and  procedures.  Our  chief  executive  officer  and  chief  financial  officer
concluded,  as  of  fifteen  days  prior to the filing date of this report, that
these  disclosure  controls  and  procedures  are  effective.

     Changes  in  internal  controls.  Subsequent  to  the  date  of  the  above
evaluation,  we made no significant changes in our internal controls or in other
factors  that  could  significantly  affect  these controls, nor did we take any
corrective  action,  as  the  evaluation revealed no significant deficiencies or
material  weaknesses.

Item  6.     Exhibits  and  Reports  on  Form  8-K

(a)     Exhibits

     The following exhibits are filed, by incorporation by reference, as part of
this  Form  10-QSB:

     Exhibit  No.                    Description
     ------------                    -----------

           3          -     Amended  and  Restated  Articles of Incorporation of
                            Consortium  Service  Management  Group,  Inc.*

           3.1        -     Bylaws  of  Consortium  Service   Management  Group,
                            Inc.*

          10          -     Founders'  Agreement  of United Engineering Company*


                                       13
<PAGE>

          10.1        -     Statutes  (Bylaws)  of United Engineering Company*

          10.2        -     Agreement  of  April  24,  1996  between  Consortium
                            Service Management Group, Inc. and The L Group, Inc.
                            concerning tissue bonding technology*  (rescinded in
                            January  2000)

          10.3        -     Agreement  of   July  9,  1996   between  Consortium
                            Service Management  Group,  Inc.  and  International
                            Welding concerning tissue bonding  technology*

          10.4        -     Agreement  among   Consortium   Service   Management
                            Group, Inc.,  United Engineering Company and Ivan V.
                            Semenenko, the inventor of the anaerobic farm  waste
                            technology*

          10.5        -     Agreement of  June 9, 1998 a mong Consortium Service
                            Management  Group,  Inc.,   The  Sumy Frunze Machine
                            Building Science  and  Production  Association,  and
                            United Engineering Company  concerning the anaerobic
                            farm waste technology*

          10.6        -     Agreement  between   Consortium  Service  Management
                            Group,  Inc.  and   Western  Waste  Management, Inc.
                            concerning the anaerobic farm waste  technology*

          10.7        -     Agreement  between   Consortium  Service  Management
                            Group,  Inc.  and   Aardema  Dairy  concerning   the
                            anaerobic farm waste technology*

          10.8        -     Agreement  between   Consortium  Service  Management
                            Group, Inc. and John  and  Ruth  Beukers  concerning
                            the anaerobic farm waste technology*

          10.9        -     Agreement  of  December 1998  between  International
                            Welding  Association of Kiev, Ukraine and Consortium
                            Service Management Group, Inc. concerning the carbon
                            dioxide  separator  technology*

          10.10        -    Operating   Agreement   of  June  14,  2001  between
                            Consortium  Service   Management  Group,  Inc.   and
                            Resource Technology Corporation***

          10.11        -    Contract Agreement Effective August 14, 2000 between
                            Consortium Service Management  Group/Anaerobic  Farm
                            Waste Co. and Rondeau Anaerobic***

          10.12        -    Contract     IAW-USA    002-PR-19.04.2000    between
                            International  Association  Welding, Kiev  and  E.O.
                            Paton  Electric  Welding Institute National  Academy
                            Science  Ukraine  and  Consortium Service Management
                            Group,  Inc.***


                                       14
<PAGE>

          10.13        -    Contract    IAW-USA    003-PR-19.04.2000     between
                            International  Association Welding,  Kiev  and  E.O.
                            Paton  Electric  Welding Institute National  Academy
                            Science  Ukraine  and  Consortium Service Management
                            Group,  Inc.***

          10.14        -    Contract    IAW-USA    004-PR-19.04.2000     between
                            International Association  Welding,  Kiev  and  E.O.
                            Paton  Electric  Welding Institute National  Academy
                            Science  Ukraine  and  Consortium Service Management
                            Group,  Inc.***

          10.15        -    Contract    IAW-USA    005-PR-19.04.2000     between
                            International  Association Welding,  Kiev  and  E.O.
                            Paton  Electric  Welding Institute National  Academy
                            Science  Ukraine  and  Consortium Service Management
                            Group,  Inc.***

          10.16        -    Contract    IAW-USA     006-PR-19.04.2000    between
                            International Association  Welding,  Kiev  and  E.O.
                            Paton  Electric  Welding Institute National  Academy
                            Science  Ukraine  and  Consortium Service Management
                            Group,  Inc.***

          10.17        -    Contract     IAW-USA    007-PR-19.04.2000    between
                            International  Association Welding,  Kiev  and  E.O.
                            Paton  Electric  Welding Institute National  Academy
                            Science  Ukraine  and  Consortium Service Management
                            Group,  Inc.***

          10.18        -    Contract    IAW-USA   008-PR  between  International
                            Association Welding, Kiev,  Ukraine  and  Consortium
                            Service Management Group, Inc.***

          10.19        -    Natural  Gas  Purchase  Agreement  of  June 20, 2000
                            between  Texas  Energy  Transfer  Company, Ltd.  and
                            Resource Technology Corp.****

          10.20        -    Agency   Agreement   between   Joint  Stock  Company
                            "Sumy Frunze Machine-Building Science and Production
                            Association"  of   Ukraine  and  Consortium  Service
                            Management  Group,  Inc.+

          10.21        -    2003  Stock  Option  Plan  adopted  by  the board of
                            directors of Consortium  Service  Management  Group,
                            Inc.++

          16          -     Letter dated January 29, 2000 from Jaak (Jack) Olesk
                            to Consortium Service  Management  Group,  Inc.  Re:
                            Termination as Auditor**


                                       15
<PAGE>

          31          -     Certification of Chief Executive Officer pursuant to
                            18  U.S.C. Section  1350,  as  adopted  pursuant  to
                            Section 302 of the Sarbanes-Oxley Act  of  2002.

          31.1        -     Certification of Chief Financial Officer pursuant to
                            18  U.S.C. Section  1350,  as  adopted  pursuant  to
                            Section  302  of  the Sarbanes-Oxley  Act  of  2002.

          32          -     Certification of Chief Executive Officer pursuant to
                            18  U.S.C. Section  1350,  as  adopted  pursuant  to
                            Section 906 of the Sarbanes-Oxley Act  of  2002.

          32.1        -     Certification  of  Chief  Financial Officer pursuant
                            to 18  U.S.C.  Section  1350,  as  adopted  pursuant
                            to  Section  906  of the Sarbanes-Oxley Act of 2002.

          99          -     Ukraine   Ministry  of   Health,  State  Department,
                            Certificate o  State  Registration  No.  1105-193***

     *Previously filed with Form 10-SB; Commission File No. 0-27359 incorporated
     herein.

     **Previously  filed with Amendment No. 1 to Form 10-SB; Commission File No.
     0-27359  incorporated  herein.

     ***Previously filed with Amendment No. 2 to Form 10-SB; Commission File No.
     0-27359  incorporated  herein.

     ****Previously  filed  with  Amendment  No. 1 to Form 10-QSB for the period
     ended  September 30, 2002; Commission File No. 0-27359 incorporated herein.

     +Previously  filed  with  Form 10-KSB for the year ended December 31, 2002;
     Commission  File  No.  0-27359  incorporated  herein.

     ++Previously filed with Amendment No. 1 to Form 10-QSB for the period ended
     March  31,  2003;  Commission  File  No.  0-27359  incorporated  herein.


(b)     Forms  8-K

     None




                                       16
<PAGE>


                                   SIGNATURES

     Pursuant  to  the  requirements of the Exchange Act of 1934, the Registrant
has  duly  caused  this  report  to  be  signed on its behalf by the undersigned
hereunto  duly  authorized.

Date:  August  19,  2003          Consortium Service Management Group, Inc.


                                  By:/s/  Gordon  W.  Allison
                                     -------------------------------------------
                                     Gordon  W.  Allison,
                                       Executive  Vice  President
                                       and  Chief  Financial  Officer
















                                       17

<PAGE>


                    Consortium Service Management Group, Inc.
                          Commission File No. 0-27359

                                  EXHIBIT INDEX

                                  FORM 10-QSB
                  For the quarterly period ended June 30, 2003


     The following exhibits are filed, by incorporation by reference, as part of
this  Form  10-QSB:

     Exhibit  No.                    Description
     ------------                    -----------

           3          -     Amended  and  Restated  Articles of Incorporation of
                            Consortium  Service  Management  Group,  Inc.*

           3.1        -     Bylaws  of  Consortium  Service   Management  Group,
                            Inc.*

          10          -     Founders'  Agreement  of United Engineering Company*

          10.1        -     Statutes  (Bylaws)  of United Engineering Company*

          10.2        -     Agreement  of  April  24,  1996  between  Consortium
                            Service Management Group, Inc. and The L Group, Inc.
                            concerning tissue bonding technology*  (rescinded in
                            January  2000)

          10.3        -     Agreement  of   July  9,  1996   between  Consortium
                            Service Management  Group,  Inc.  and  International
                            Welding concerning tissue bonding  technology*

          10.4        -     Agreement  among   Consortium   Service   Management
                            Group, Inc.,  United Engineering Company and Ivan V.
                            Semenenko, the inventor of the anaerobic farm  waste
                            technology*

          10.5        -     Agreement of  June 9, 1998 a mong Consortium Service
                            Management  Group,  Inc.,   The  Sumy Frunze Machine
                            Building Science  and  Production  Association,  and
                            United Engineering Company  concerning the anaerobic
                            farm waste technology*

          10.6        -     Agreement  between   Consortium  Service  Management
                            Group,  Inc.  and   Western  Waste  Management, Inc.
                            concerning the anaerobic farm waste  technology*

..
                                        1
<PAGE>

          10.7        -     Agreement  between   Consortium  Service  Management
                            Group,  Inc.  and   Aardema  Dairy  concerning   the
                            anaerobic farm waste technology*

          10.8        -     Agreement  between   Consortium  Service  Management
                            Group, Inc. and John  and  Ruth  Beukers  concerning
                            the anaerobic farm waste technology*

          10.9        -     Agreement  of  December 1998  between  International
                            Welding  Association of Kiev, Ukraine and Consortium
                            Service Management Group, Inc. concerning the carbon
                            dioxide  separator  technology*

          10.10        -    Operating   Agreement   of  June  14,  2001  between
                            Consortium  Service   Management  Group,  Inc.   and
                            Resource Technology Corporation***

          10.11        -    Contract Agreement Effective August 14, 2000 between
                            Consortium Service Management  Group/Anaerobic  Farm
                            Waste Co. and Rondeau Anaerobic***

          10.12        -    Contract     IAW-USA    002-PR-19.04.2000    between
                            International  Association  Welding, Kiev  and  E.O.
                            Paton  Electric  Welding Institute National  Academy
                            Science  Ukraine  and  Consortium Service Management
                            Group,  Inc.***

          10.13        -    Contract    IAW-USA    003-PR-19.04.2000     between
                            International  Association Welding,  Kiev  and  E.O.
                            Paton  Electric  Welding Institute National  Academy
                            Science  Ukraine  and  Consortium Service Management
                            Group,  Inc.***

          10.14        -    Contract    IAW-USA    004-PR-19.04.2000     between
                            International Association  Welding,  Kiev  and  E.O.
                            Paton  Electric  Welding Institute National  Academy
                            Science  Ukraine  and  Consortium Service Management
                            Group,  Inc.***

          10.15        -    Contract    IAW-USA    005-PR-19.04.2000     between
                            International  Association Welding,  Kiev  and  E.O.
                            Paton  Electric  Welding Institute National  Academy
                            Science  Ukraine  and  Consortium Service Management
                            Group,  Inc.***

          10.16        -    Contract    IAW-USA     006-PR-19.04.2000    between
                            International Association  Welding,  Kiev  and  E.O.
                            Paton  Electric  Welding Institute National  Academy
                            Science  Ukraine  and  Consortium Service Management
                            Group,  Inc.***

          10.17        -    Contract     IAW-USA    007-PR-19.04.2000    between

                                        2
<PAGE>

                            International  Association Welding,  Kiev  and  E.O.
                            Paton  Electric  Welding Institute National  Academy
                            Science  Ukraine  and  Consortium Service Management
                            Group,  Inc.***

          10.18        -    Contract    IAW-USA   008-PR  between  International
                            Association Welding, Kiev,  Ukraine  and  Consortium
                            Service Management Group, Inc.***

          10.19        -    Natural  Gas  Purchase  Agreement  of  June 20, 2000
                            between  Texas  Energy  Transfer  Company, Ltd.  and
                            Resource Technology Corp.****

          10.20        -    Agency   Agreement   between   Joint  Stock  Company
                            "Sumy Frunze Machine-Building Science and Production
                            Association"  of   Ukraine  and  Consortium  Service
                            Management  Group,  Inc.+

          10.21        -    2003  Stock  Option  Plan  adopted  by  the board of
                            directors of Consortium  Service  Management  Group,
                            Inc.++

          16          -     Letter dated January 29, 2000 from Jaak (Jack) Olesk
                            to Consortium Service  Management  Group,  Inc.  Re:
                            Termination as Auditor**

          31          -     Certification of Chief Executive Officer pursuant to
                            18  U.S.C. Section  1350,  as  adopted  pursuant  to
                            Section 302 of the Sarbanes-Oxley Act  of  2002.

          31.1        -     Certification of Chief Financial Officer pursuant to
                            18  U.S.C. Section  1350,  as  adopted  pursuant  to
                            Section  302  of  the Sarbanes-Oxley  Act  of  2002.

          32          -     Certification of Chief Executive Officer pursuant to
                            18  U.S.C. Section  1350,  as  adopted  pursuant  to
                            Section 906 of the Sarbanes-Oxley Act  of  2002.

          32.1        -     Certification  of  Chief  Financial Officer pursuant
                            to 18  U.S.C.  Section  1350,  as  adopted  pursuant
                            to  Section  906  of the Sarbanes-Oxley Act of 2002.

          99          -     Ukraine   Ministry  of   Health,  State  Department,
                            Certificate o  State  Registration  No.  1105-193***

     *Previously filed with Form 10-SB; Commission File No. 0-27359 incorporated
     herein.

     **Previously  filed with Amendment No. 1 to Form 10-SB; Commission File No.
     0-27359  incorporated  herein.

     ***Previously filed with Amendment No. 2 to Form 10-SB; Commission File No.
     0-27359  incorporated  herein.

     ****Previously  filed  with  Amendment  No. 1 to Form 10-QSB for the period
     ended  September 30, 2002; Commission File No. 0-27359 incorporated herein.

     +Previously  filed  with  Form 10-KSB for the year ended December 31, 2002;
     Commission  File  No.  0-27359  incorporated  herein.

     ++Previously filed with Amendment No. 1 to Form 10-QSB for the period ended
     March  31,  2003;  Commission  File  No.  0-27359  incorporated  herein.





                                        3