Administration represents your government's management capacity in a Territory.
The more population and distance from the capital, the harder it is to manage the territory. But it can also be improved by active policies and services in the territory such as Scribes helping in the territory's administration.
The Administration resource can be produced by the following buildings:
Community Hall / Town Hall
For more information, refer to the Scribes page.
Administration is also consumed, they are broken down in-game into two categories, Global Factors, and Local Factors:
Number of Regions
Cost = 0.05 * Production * (Regions - 1)
Distance of Capital
Cost = 0.1 * Production * Distance
-3 Administration per Regional Claim
-10 Administration per Regional Territory
Going over the number of claims/territories you can have for a Hamlet/Village/Town has a large administration penalty.
Cost = Population / 10
Administration has an impact on your ability to control territories around your Hamlet/Village/Town, as well as your income in Territories:
A weak Administration value will reduce the number of regions you can effectively control.
A weak Administration value will increase the amount of Wasted Income in the Territory.