Mike,
Is the end of the beam bearing on anything? I don't see any bearing surface in your pic.
Assuming the end of the beam has proper bearing, with the end of the beam notched as it is the entire shear load at that end must be resisted by about 1/3 of the beam (the top portion of the beam that was not notched). And the beam will split longitudinally from the corner of the notch.
Definitely a job for a SE. (The beam may need to be replaced because the notch has destroyed its structrual integrity at that end. Or the engineer may come up with a fix to install bearing under the uncut portion of the beam, e.g., bolting an angle section to the foundation wall. Or he may recommend adding more Romex.
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