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 September 30, 2001

                                       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                                                   (IRS Employer
incorporation)              (Commission File Number)           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  [ ]     No  [X]

As of September 30, 2001, there were 5,282,940 shares of the Registrant's Common
Stock,  par  value  $0.001,  outstanding  and  75,669 shares of the Registrant's
Series  A  Preferred  Stock,  par  value  $0.001,  outstanding.

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


<PAGE>
                    CONSORTIUM SERVICE MANAGEMENT GROUP, INC.
                        NOTES TO THE FINANCIAL STATEMENTS
                                  (Unaudited)



                         PART I - FINANCIAL INFORMATION



Item  1.          Financial  Statements


















                                        2
<PAGE>


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



I have reviewed the accompanying balance sheets of Consortium Service Management
Group,  Inc.  and Subsidiary as of September 30, 2001 and December 31, 2000, and
the  related  Statements of Operations, Accumulated Deficits, and Cash Flows 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  Subsidiary.

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  raises 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

Date:  November  14,  2001                    Gary  Skibicki
Oklahoma  City,  OK.                          Certified  Public  Accountant


                                        3
<PAGE>
            CONSORTIUM SERVICE MANAGEMENT GROUP, INC. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEET


                                     ASSETS
                                     ------
<TABLE>
<CAPTION>
                                                    9/30/01          12/31/00
                                                    -------          --------
Current  Assets
---------------
<S>                                                <C>             <C>
Cash                                               $    4,875      $    1,492

Dividends  Receivable                                                   8,155
                                                   ----------      ----------

     Total  Current  Assets                        $    4,875      $    9,647


Fixed  Assets
-------------

Furniture,  Fixtures,  Equipment                       60,908          74,909
Less:  Accumulated  Depreciation                      (41,534)        (35,751)
                                                   ----------      ----------

     Total  Fixed  Assets                          $   19,374      $   39,158


Other  Assets
-------------
Investment  -  United                                 402,506         307,217
  Engineering  Co.

Investment  -  Anaerobic
  Farm  Waste,  Inc.                                    1,200             880

Carbon  Dioxide  Equipment                            654,300          27,889

Employee  Advances                                     66,708           1,752

Tissue  Bonding  Patent                                10,454           8,667
Less:  Accumulated  Amortization                         (845)           (482)
                                                   ----------      ----------

     Total  Other  Assets                          $1,134,323      $  345,923
                                                   ----------      ----------

     Total  Assets                                 $1,158,572      $  394,728
                                                   ==========      ==========
</TABLE>


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

                                        4
<PAGE>
            CONSORTIUM SERVICE MANAGEMENT GROUP, INC. AND SUBSIDIARY
                     CONSOLIDATED BALANCE SHEET (Continued)

                                  LIABILITIES
                                  -----------

<TABLE>
<CAPTION>
                                                      9/30/01         12/31/00
                                                      -------         --------
Current  Liabilities
--------------------
<S>                                                  <C>            <C>
Accounts  Payable                                    $   120,476    $    43,661

Interest  Payable                                        164,617         83,332

Federal  Payroll  Taxes  Payable                                         23,896

Notes  Payable  To  Stockholders                       1,475,764        990,264
                                                     -----------      ----------

     Total  Current  Liabilities                     $ 1,760,857    $ 1,141,153


                        STOCKHOLDERS' AND MEMBERS' EQUITY
                        ---------------------------------

Preferred  Stock  $.001  par  value,
10,000,000  shares  authorized;
75,669  shares  issued  and  outstanding
at  December  31,  2000,  0  shares  issued
and  outstanding  at  September  30,  2001                          $        76

Common  Stock  $.001  par  value,
40,000,000  shares  authorized;
3,927,374  shares  issued  and
outstanding  at  December  31,  2000
and  5,282,940  issued  and
outstanding  at  September  30,  2001                $     5,283          3,927


Additional  Paid  In  Capital                          3,696,973      2,452,680

Membership  Capital  Gastech  LLC                        206,000

Beginning  Accumulated  Deficit,                      (3,203,108)    (2,257,537)
1/1/01,  1/1/00

Current  Year  Loss                                   (1,312,403)      (935,770)

Foreign  Exchange  Gain  (Loss)                            4,970         (9,801)
                                                     -----------      ----------

Ending  Accumulated  Deficit,
9/30/01,  12/31/00                                   $(4,510,541)   $(3,203,108)

     Total  Stockholders'  Equity                       (602,285)      (746,425)
                                                     -----------      ----------

     Total  Liabilities  and
     Stockholders'  Equity                           $ 1,158,572    $   394,728
                                                     ===========    ===========
</TABLE>

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

                                        5
<PAGE>
            CONSORTIUM SERVICE MANAGEMENT GROUP, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENT OF OPERATIONS
                                  (UNAUDITED)

<TABLE>
<CAPTION>
                           July 1, 2001-  July 1, 2000-  Jan. 1, 2001-  Jan.  1,  2000-
                           Sep. 30, 2001  Sep. 30, 2000  Sep. 30, 2001  Sep.  30,  2000
                           -------------  -------------  -------------  ---------------
<S>                          <C>             <C>           <C>             <C>
Revenues                     $       0       $       0     $       100     $   19,000

Cost  of  Goods Sold                                             5,000
                             ---------       ---------     -----------     ----------

Gross  Profit                                                   (4,900)        19,000

General  and
Administrative Expenses        161,119         272,136       1,371,874        524,677

  Funded  R&D                        0               0               0              0

  Cost  of  Funded  R&D         12,680          31,014          32,734         90,531

  Net  R&D  Cost                12,680          31,014          32,734         90,531
                             ---------       ---------     -----------     ----------

Operating  Loss              $(173,799)      $(303,150)    $(1,409,508)   $  (596,208)

(Loss)  On  Investments                                                       (21,510)

Interest  Income                   821           1,031             912          2,476

Interest in Income
(Loss) Of Unconsolidated
Companies                      118,057          12,738          96,193        123,397

Foreign  Currency
Gain  (Loss)                     2,700                           4,970        (13,142)
                             ---------       ---------     -----------     ----------

(Loss)  From  Continuing
Operations                     (52,221)       (289,381)     (1,307,433)      (504,987)
                             ---------       ---------     -----------     ----------

Income  Taxes

Net  (Loss)                  $ (52,221)      $(289,381)    $(1,307,433)    $ (504,987)

Basic  and  Diluted
Loss  Per  Share                  (.01)           (.09)           (.25)          (.16)

Weighted  Average
Common Shares Outstanding      5210509 SHS     3364344 SHS     5186365SHS     3117491  SHS
</TABLE>


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

                                        6
<PAGE>
            CONSORTIUM SERVICE MANAGEMENT GROUP, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                  (UNAUDITED)


<TABLE>
<CAPTION>
                           July 1, 2001-  July 1, 2000-  Jan. 1, 2001-  Jan.  1,  2000-
                           Sep. 30, 2001  Sep. 30, 2000  Sep. 30, 2001  Sep.  30,  2000
                           -------------  -------------  -------------  ---------------
<S>                          <C>             <C>           <C>             <C>
Cash Flows From Operating
  Activities
Net  Loss                    $ (52,221)      $(289,381)    $(1,307,433)    $  (504,987)
Depreciation and Amortization    4,006           1,928          12,018           5,783
Equity (Income) Loss
  from  Investees             (118,057)        (12,738)        (96,193)       (123,397)
Increase Other Liabilities                       6,188                           1,040
Increase Other Receivables
Foreign Currency Exchange
  Loss (Gain)                   (2,700)                         (4,970)         13,142
Increase Accrued Interest
  Payable                       27,095                          81,285
Decrease Accounts Payable                                                       (4,188)
Decrease Payroll Taxes
  Payable                      (29,750)                        (23,896)
Dividends from Investees                                         8,155           3,685
Increase Prepaid Expenses                                                       (5,000)
Compensation for Common Stock                                  756,690          46,129
                             ---------       ---------     -----------     -----------
Net Cash Used In
  Operations                 $(171,627)      $(294,003)    $  (574,344)    $  (567,793)


Cash Flows From
  Investing  Activities
Increase Employee Advances     (18,522)        (21,926)        (64,956)        (78,481)
Increase  Notes  Receivable
Purchase  Equipment                                           (612,411)         (6,058)
Purchase  Securities                                                            (8,490)
Increase  Patent                (1,787)                         (1,787)
Investment in Subsidiary                                          (320)
                             ---------       ---------     -----------     -----------

Net Cash Used In Investing   $ (20,309)      $ (21,926)    $   (679,474)   $   (93,029)

Cash Flows From Financing
Increase  in  Common  Stock        145             332          220,145            332
Increase Paid in Capital        90,213         204,142          268,741        204,142
Increase (Decrease) in
  Notes  Payable               380,500          (9,767)         485,500        462,500
Decrease Membership Capital    (20,000)                         206,000
Increase (Decrease)
  Accounts Payable*           (283,911)                          76,815
                             ---------       ---------     -----------     -----------

Net Cash From Financing      $ 166,947       $ 194,707     $  1,257,201    $   666,974

Net Increase (Decrease) Cash   (24,989)       (121,222)           3,383          6,152
Cash Beginning of Period        29,864         127,368            1,492             (6)
Cash End of Period           $   4,875       $   6,146     $      4,875    $     6,146
</TABLE>

*Accounts payable are shown as part of financing in 2001 because they relate  to
purchasing carbon dioxide equipment.

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

                                        7
<PAGE>
                    CONSORTIUM SERVICE MANAGEMENT GROUP, INC.
                        NOTES TO THE FINANCIAL STATEMENTS
                                  (Unaudited)


                                     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 nine month period
ending September 30, 2001 are not necessarily indicative of the results that may
be  expected  for  the  year  ended December 31, 2001.  For further information,
refer  to  the  annual  financial  statements and footnotes thereto for the year
ended  December  31,  2000.

On  February  15,  2001 CSMG Gastech LLC was formed as a Texas Limited Liability
Company  of  which  Consortium  Service  Management  Group  owns  55%  interest.
Operations  in  2001  for  CSMG Gastech have principally been limited to raising
funds  through  selling membership interest to purchase carbon dioxide separator
equipment, and those activities have been included in the consolidated financial
statements.


                                     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  $1,307,433  for  the  nine  months  ended  September 30, 2001 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.


                                        8
<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 - Third Quarter of 2001 Compared to Third Quarter of
     ---------------------------------------------------------------------------
2000
----

     We  had  no  revenues  during  Q3  2001  or  Q3  2000.

     General and administrative expenses decreased during Q3 2001 to $161,119 as
compared  to $272,136 in Q3 2000. The decrease was attributable to the reduction
of  research  and  development  costs  for  our  live  tissue bonding, anaerobic
farm-waste  disposal  and  CO2  separator  projects.

     We  continued  funding our research and development project on human tissue
bonding  in  Kiev,  Ukraine  during Q3 2001.  We spent $12,680 in funds for this
project.  During  Q3 2000 we spent $31,014 in funded research and development on
this  project,  or  2.45  times  as  much.

     We  accrued  income  of  $118,057 in Q3 2001 from our Ukraine joint venture
with  United  Engineering Company, compared with accrued income of $12,738 in Q3
2000.  This  income  is attributable to converting Ukraine defense installations
to  other  purposes.  We experienced a foreign currency gain of $2,700 during Q3
2001,  as  opposed  to  no  gain  or  loss  in  Q3  2000  from  this  source.

     Our  net loss during Q3 2001 of $52,221 was $237,160 less than the $289,381
net  loss  during  Q3  2000  -  a 78 percent reduction.  This much less loss was
attributable  to  reductions  in  research  and  development  costs.

     Results  of  Operations  -  First  Three Quarters of 2001 Compared to First
     ---------------------------------------------------------------------------
Three  Quarters  of  2000
-------------------------

     Revenue  from operations was only $100 for the first three quarters of 2001
compared  to  $19,000  the  first  three  quarters  of  2000.

     General  and  administrative  expenses, however, increased from $524,677 in
the  first  three quarters of  2000 to $1,371,874 in the first three quarters of
2001.  In  large  part, the increase in operating expenses in 2001 is attributed
to  the manufacturing of CO2 methane gas separating equipment and other expenses
related  to  our  CO2  separator  project.

     We  had  accrued income of $96,193 from our Ukraine joint venture in United
Engineering  Company  during  the first three quarters of 2001, as compared with
accrued  income  of  $123,397  from this source in the same period in 2000.  Our
foreign  currency  loss  of  $13,142  during  the  first  three quarters of 2000
compared favorably with a gain of $4,970 from this source during the same period
in  2001.

                                        9
<PAGE>

     We  experienced  a net loss of $504,987 in the first three quarters of 2000
as  compared  to  a  net loss of $1,307,433 in the first three quarters of 2001.
The  loss  per  share  of common stock was $0.16 for the first three quarters of
2000  compared  to  a net loss per share of $0.25 in the first three quarters of
2001.

     Outlook
     -------

     The  statements  made  in  this  Outlook  are  based  on  current plans and
expectations.  These statements are forward-looking, and actual results may vary
considerably  from  those  that  are  planned.

     We  are  optimistic  for our future, particularly with regard to the fourth
quarter  of  2001  and  2002.  Our CO2 separator project appears to be extremely
promising,  with  negotiations  underway  with  Resource  Technology Corporation
regarding  the  extraction  of  methane  gas  from  five landfills in the U.S.A.

     The  company's  future  results of operations and the other forward-looking
statements   contained  in   this  Outlook   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.



<PAGE>

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*

          10.1        -     Statutes  (Bylaws) of United Engineering Company*

          10.2        -     Agreement  of  April  24,  1996  between  Consortium

                                       10
<PAGE>

                            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 among 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.***

                                       11
<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.***

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

          99          -     Ukraine  Ministry  of  Health,   State   Department,
                            Certificate  of  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.

                                       12
<PAGE>

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


(b)     Forms  8-K

        None

                                   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:  November 16, 2001                    Consortium Service Management Group,
Inc.


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















                                       13