"Harrison was a real keen little lifeguard. He would always come down to the beach and come on patrol with me. A few times, he even pointed out people who were in trouble and we were able to save them.
"He would've been right into this, boots and all."
The 11 to 14-year-olds going through the rookie training programme were Harrison's age, Harrison's friends, he said.
"It's something Harrison would've wanted - to have been the top rookie. He would've loved this award."
Mr Knox approached the Mundys last year with his plan to cycle from his university city to his home town to fundraise for their son.
He said yesterday that "Cycling home for Harrison" was by far one of the biggest things he had done in his life. "Right from the get go Harrison was a huge inspiration to me ... I can only imagine what he went through and, compared to that, what I was going through was nothing.
"He inspired me to keep pushing, keep going and keep smiling.
"I don't think I ever saw a photo of Harrison not smiling."
It was the thought of Harrison's battle that got Mr Knox out of bed in the morning to train and got him through the days cycling home in strong head-winds and freezing cold rain.
Mr Mundy said people like Callum Knox going "over and above" to help their family was a huge support for them.
Money fundraised by the surf lifesaving community for the Mundys during Harrison's battle was the foundation of the trust.
"We had a tragic loss last year but the silver lining of that is seeing how strong these clubs are.
"We don't see it as appropriate to spend that money on ourselves. It was given to us when we were in need but now we're not anymore so we want to give it back to the community."
The first scholarship will be awarded to the Rookie of the Year at the Eastern Region Surf Lifesaving prize-giving in August and will go toward equipment or an experience to better the lifesaver's abilities.
Mrs Mundy said they hoped the scholarships would continue for as long as possible with the help of local businesses.
