[Liability for Erroneous Payment Incident to Invalid Service Agreement]

A former Army doctor questioned the Army's determination that he was liable for an erroneous payment which he received incident to an invalid service agreement. The member received a lump-sum bonus payment upon reenlisting, subject to terms that he and his commanding officer agreed upon; however, those terms did not require him to serve 1 year, as the law requires. The member resigned from the Army less than 1 year after his reenlistment. The Army determined that the service agreement was invalid because: (1) the member's commanding officer executed it without authorization; and (2) the agreement did not provide for a 1-year service period. GAO held that: (1) the Army properly determined that the service agreement was invalid; (2) the member was liable for the full amount of the bonus because his separation was not hardship-related or in the Army's best interest; and (3) the member's reliance on his commanding officer's advice did not preclude liability. Accordingly, the member should refund the total amount of the erroneous payment.