managers on how they should exercise control. Whilst agreeing that suitable control was essential, the Data Processing Manager maintained that the fact that a programmer was writing a program was an implied authorisation for him to use the computer and that he relied on the self-discipline of his staff. I have pointed out that it is frequently lack of adequate supervision on the part of computer management which gives rise to computer abuse and I have expressed the opinion that the position as it stands is extremely unsatisfactory.
21 The weaknesses noted were of particular concern when linked with the facility given to operators and control staff undertaking private studies to use the computer to develop their own private programs. I have been informed that since it was brought to notice in audit, this concession has fortunately been withdrawn, but the possibility that improper use of the computer might have occurred cannot be overlooked and, in suggesting as a basic preventive measure the establishment of a procedure for the correct authorisation and control of computer use, I have expressed my anxiety at the Data Processing Manager's apparent lack of appreciation of this very fundamental rule of computer operational control.
22 I invited attention to the absence of a sufficient procedure for recording and controlling the magnetic media, which could contain vital data or programs, and the need for a designated media librarian to supervise and control its movement. I understand that the Data Processing Manager now accepts the necessity for increased security and control in this respect and that he has made proposals for the creation of two posts of media librarian, intending to establish a separate media library in conjunction with the new installation. I have suggested also, that as a safeguard against fire or theft, the system of depositing copies of magnetic media in locations outside the building in which the Data Processing Division is housed, should be extended to cover all important operational programs and data, and that an officer should be specifically designated as a security officer with particular responsibilities for safeguarding material. These suggestions are under consideration.
23 Somewhat similar, but not nearly so extensive, weaknesses in security were also indicated by an audit review of the Treasury computer installation. Whilst readily appreciating the desirability of taking appropriate precautionary measures, the Director of Accounting Services foresaw difficulties in the short term in implementing my recommenda- tions. He pointed to the vast increase in recent years in the work load of the Treasury Computer Division and expressed the view that in the interests of practicability it was necessary for him to depart from the theory of good computer management.
24 In emphasising the danger which exists in deviating from accepted control practices (which has been all too well demonstrated in several well documented computer frauds which have occurred in other countries), I have suggested that every attempt should be made to introduce improved control procedures at an early date and that, in addition, my own necessarily limited examination should be supplemented by the establishment of an internal audit team, inter alia to carry out reviews on systems and operational controls. This suggestion has been accepted.
25 Government Tender Procedures. One of the conditions attaching to the submission of tenders for certain classes of construction projects is the inclusion for internal control purposes, of a photocopy or carbon copy of the priced Bills of Quantities forming part of the tender. A failure to supply such a copy invalidates the tender and tenders which have not conformed to this condition have quite properly been rejected. In paragraph 26 of my previous report I suggested that, even taking into account the necessity for the safeguards provided by the requirement of the copy documents, the effect of the condition might be too severe and that overall it might operate to the disadvantage of the Government, and I cited cases in which it had led to the rejection of bids which would otherwise have been the lowest submitted and consequently to increased costs to the Government from the acceptance of higher tenders. I understood at that time that consideration was being given to the modification of the condition with a view to alleviating its more extreme consequences, but despite several subsequent inquiries I have received no further advice on the matter. Meanwhile a more recent audit review of Central Tender Board procedures brought to notice two cases in which the condition resulted in expenditure of over $1 million more than might otherwise have been incurred.
26 Government Transport. The conditions governing the use of official vehicles by Heads of Departments and other senior Government officers for purposes other than duty are prescribed in regulations which, whilst in some respects anomalous, are nevertheless quite clear. They provide that an officer of appropriate rank and status may have the free use of a departmental car, where available, for home-to-office journeys and also for attendance at a function when the invitation arises from his official position. The rules strictly debar the use of pool cars for these purposes, but audit reviews of the use of cars in the Government transport pool indicated that this prohibition was not being observed and that misuse of vehicles by senior officers extended over a number of departments. A separate review on the use of departmental cars showed that, although it was clearly intended that the concession permitting free home-to-office journeys should not detract from the availability of the cars for other uses, there was little doubt that in some cases at least it had had the effect of pre-empting cars for the almost exclusive personal use of the officers concerned. In one department it was readily admitted in response to an audit inquiry, that it had been thought that the car had been provided solely for the Head of Department. I have recently been informed that the regulations governing the use of official cars by Government officers are being revised in order to provide a more realistic approach to the question, although present indications are that the intention is not to make the regulations more restrictive in order to facilitate greater economy in the use of vehicles, but to broaden them to permit uses which are presently improper.
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