Index: bp-core/admin/bp-core-schema.php
===================================================================
--- bp-core/admin/bp-core-schema.php	(revision 2952)
+++ bp-core/admin/bp-core-schema.php	(working copy)
@@ -147,6 +147,10 @@
 			   ) {$charset_collate};";
 
 	dbDelta($sql);
+
+	$role =& get_role( 'administrator' );
+	if ( !empty( $role ) )
+		$role->add_cap( 'bp_manage_groups' );
 }
 
 function bp_core_install_private_messaging() {
Index: bp-groups.php
===================================================================
--- bp-groups.php	(revision 2952)
+++ bp-groups.php	(working copy)
@@ -50,10 +50,10 @@
 		$bp->groups->current_group = new BP_Groups_Group( $group_id );
 
 		/* Using "item" not "group" for generic support in other components. */
-		if ( is_site_admin() )
+		if ( is_site_admin() || current_user_can( 'bp_manage_groups' ) )
 			$bp->is_item_admin = 1;
 		else
-			$bp->is_item_admin = groups_is_user_admin( $bp->loggedin_user->id, $bp->groups->current_group->id );
+			$bp->is_item_admin = groups_is_user_admin( $bp->loggedin_user->id, $bp->groups->current_group->id;
 
 		/* If the user is not an admin, check if they are a moderator */
 		if ( !$bp->is_item_admin )