The author defined what he meant by functional, and by that definition, he is correct.
If you change the definition of "functional" to "a language with first class functions and stateful closures", as you seem to implicitly want, then yes, Lisp is functional.
If you change the definition of "functional" to "a language with first class functions and stateful closures", as you seem to implicitly want, then yes, Lisp is functional.