Time zone setting saved but not reflected in blog

I just started using the Atahualpa 3.4.2 WordPress theme. When I set my date format in general > settings it was not reflected in my blog. I had to change that manually in the theme options, so no problem. But my timezone setting is reflected in my blog either, so it’s showing the wrong day. I have widgets on my site related to the current date which are showing the correct date, but I also have code related to current date that are showing the wrong day (one day behind). I am in Spain. Anyway, after the date format issue I figured I may have to set it manually too, but I can’t figure out where in the them options I could do that. It doesn’t seem to be included in the them options, which makes sense. So how do I get the setting I have saved in the WordPress admin panel to stick?

Thanks,
Amy Lyn