I know of another ahem 'Government establishment' where the USB keys are security sealed with Araldite........except for the one which is left unsealed for the USB keyboard. 

Hot swap anyone?

I think it's disabled in the sense that people don't haphazardly copy. not in the sense of a secure lock, and is probably using the windows policy system.

I'm sure they assume that they can trust adult employees to not jump through hoops to bypass it by messing with the hardware.

It's still somewhat pointless since the missing CDs were authorized I understand, or would have been, but it reduces the risks somewhat I guess.

...just disabled in Microsoft Windows? If the latter, then the BIOS can be worked around easily I'm pretty sure I could find a computer in that place where a Linux LiveCD would not only bypass all their passwords but also unlock all I/O devices.

Pen and paper also banned..

No mention of WiFi?

No mention of iPhone?

Is this an example of security via Araldite in the socket or have they just removed drivers?